Warning: getimagesize(https://media.energytimesonline.com/wp-content/uploads/2020/08/logo_n-removebg-preview-300x55.png): failed to open stream: HTTP request failed! HTTP/1.1 404 Not Found in /home/energytimes/public_html/wp-content/plugins/td-cloud-library/shortcodes/header/tdb_header_logo.php on line 792
Wednesday, July 28, 2021
Home Uncategorized NNPC pays $3bn in Cash Call to Oil Majors

NNPC pays $3bn in Cash Call to Oil Majors

- Advertisement -

The state-run Nigerian National Petroleum Corporation (NNPC) has paid the sum of $3 Billion as part of its cash call arrears in operational cost to its joint venture partnership (JVC).

The amount was paid to Exxon Mobil Corporation and Royal Dutch Shell in a bid to clear the backlog of it JVC arrears to the oil majors.

The payment is being settled through a five-year crude oil sales deal agreed in 2016, according to a statement by the state-run oil firm.

While a majority has been paid as of August, there’s still about $1.7 billion outstanding. Exxon has got $2.3 billion, clearing all dues. Shell has received $455 million but is still owed $917 million.

NNPC operates joint ventures with producers including Exxon Mobil, Shell, Chevron Corp., Total SE and Eni SpA that pump about 80 percent of Nigeria’s crude oil output.

Lower revenue and demands for other payments hampered NNPC’s ability to contribute its share of expenses from 2010 to 2015, leading to the arrears.

It still owes Eni $385 million, Total $304 million and Chevron $55 million, according to the statement.

PAID AS OF AUGUST OUTSTANDING
Exxon $2.3b none
Shell $455m  outstanding $917m
Chevron $1.0bn outstanding $55m
Total $307m outstanding $304m
Eni $390m outstanding $385m
Source: NNPC

Nigeria had agreed a $5.1 billion settlement with the international oil companies four years ago. As of July 2019, NNPC had cleared $2.3 billion.

The Nigerian state-run company on October 15, published audited accounts for only the second time in its 43-year history.

The report showed its annual loss shrank to N1.7 billion compared with N280 billion in the previous year as it slashed costs across its operations.

The payments to the oil companies suggest NNPC has enough profit and cash to afford it. That’s good news for Nigeria’s oil industry, which generates about half of all government revenue. But like oil companies around the world, NNPC is also facing weak global demand because of the coronavirus and new restrictions to contain it.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Electricity generation from Egbin plant hits 883MW, loses N13.68bn to gas, grid constraints

  BY KAYODE EKUNDAYO Electricity generation from Egbin Power Plant has risen to 883MW as another 175MW unable to be utilized due to external constraints with...

Russia writes OPEC, restates commitment to cooperation

Russia has reaffirmed its commitment to the development of the constructive cooperation with the Organisation of Petroleum Exporting Countries (OPEC) both within the framework...

Oriental Energy Resources Announce Mustafa Indimi New Managing Director

Mustafa Indimi has been appointed the new Managing Director of Oriental Energy Resources Limited, a leading indigenous oil exploration and production company in Nigeria....

Shareholder protection is our priority- Lekoil Nigeria CEO

The Chief Executive Officer of Lekoil Nigeria Limited, Mr. Lekan Akinyanmi, has disclosed that the protection and growth of shareholder value remain priority in...

Recent Comments