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Thursday, August 10, 2017
Nigeria’s state-run NNOC said that its cash call arrears owed oil companies for the development of JV assets sit at about $6.5 billion. Maikanti Baru, group MD of NNPC revealed the news at the inauguration of the reconstituted NNPC Anti-Corruption Committee in Abuja, according to a statement.
He also said the four major investments the NNPC recently embarked upon with key upstream JV partners, were capable of providing incremental revenue to the national treasury. Baru said this could provide $30billion within the next 10 years.He went on to say that these investments, which attracted close to $3.8 billion in foreign direct investments, would serve as a vehicle to fast-track the prevailing post cash-call exit era.
Projects announced recently will be undertaken using JV alternative financing. These projects include the Baru named the recently announced JV alternative financing upstream investments to include the $1.2 billion, multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited, and the NNPC/First E&P JV and Schlumberger tripartite with $800million in alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.
Other agreements that fall under alternative financing were executed in London last week, including the $1billion NNPC/SPDC JV Project Santolina and the NNPC/Chevron Project Falcon or Sonam, which is worth an estimated $780 million.
He said, “These four projects alone are going to raise incremental revenues to Nigeria of over $30billion over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting the JV cash calls.”
Baru said NNPC had to pay its pre-2016 arrears and its $1 billion balance from 2016. The company already made its first payment of $400 million in April.
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