Nigeria repays $3.72bn to five international oil companies

Nigeria has so far repaid a total of $3.72bn to five international oil companies, leaving an outstanding balance of $971.8m, latest updates on Nigeria’s cash call arrears repayment has showed.

Data obtained from the Nigeria National Petroleum Corporation Ltd, in Abuja, the nation’s capital,  indicated that the five IOCs include Shell Petroleum Development Company, Mobil Producing Nigeria, Chevron Nigeria Limited, Total Exploration and Production Nigeria, and Nigeria Agip Oil Company.

It was also learnt that Nigeria’s total cash call arrears to the firms was initially $4.689bn before it was cut down to the current amount of $971.8m after various repayments by the Federal Government through its oil firm.

Cash calls are sent by joint venture operators to non-operating partners for payment in the light of anticipated future capital, operating expenditures or the need for additional capital contributions.

The Federal Government through NNPC had over the years piled up unpaid bills, referred to as cash calls, which it was obliged to pay the IOCs with which it had joint ventures for oil exploration and production.

Figures from NNPC showed that the national oil company had cleared its total negotiated debts with both MPN and CNL, which were put at $833.75m and $1.097bn respectively.

The oil firm’s total negotiated debts with SPDC, TEPNG and NOAC were outlined as $1.37bn, $610.97m and $774.66m respectively, out of which the total payments to date by NNPC to the three IOCs were $777.4m, $458.91m and $550.01m respectively.

This leaves an outstanding balance of $595.1m to SPDC, $152.06m to TEPNG and $224.65m to NAOC.

Punch/Hauwa Abu