Home Future payments FG owes $ 1.15 billion in arrears in cash calls to five...

FG owes $ 1.15 billion in arrears in cash calls to five IOCs, forgives $ 3.53 billion in debt

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A total of $ 3.53 billion was paid by the federal government to five international oil companies as repayment of cash arrears to CIOs, leaving an outstanding balance of $ 1.15 billion.

The latest situation report on repayment before the 2016 fundraising arrears CIOs to 31 October 2021, saw in Abuja Sunday showed that the five oil companies were joint venture partners of the oil company of the country.

The report, which was obtained from the Nigerian National Petroleum Company Limited, described the five IOCs to include Shell Petroleum Development Company, Mobil Producing Nigeria and Chevron Nigeria Limited.

The others include Total Exploration and Production Nigeria and Nigeria Agip Oil Company.

Figures in the document indicated that the federal government had made refunds for cash calls to MPN and CNLs.

It was observed that the negotiated total debt and total payment to date of MPN were 833.75 million, while the negotiated total debt and total payment to date of CNL were estimated at 1.097 billion.

For SPDC, data from the latest repayment report showed that while the total negotiated debt was $ 1.37 billion, the total payment to date was $ 680.6 million, leaving a balance of $ 691.91 million. of dollars.

The total payment from the government to date TEPNG was estimated at 411.73 million on a total debt of trading 610.97 million, while the outstanding balance was estimated at 199.24 million.

NAOC had so far received $ 511.02 million. The oil company’s total negotiated debt with the federal government through the NNPC was $ 774.66 million, while the balance owing to the IOC was valued at $ 263.64 million.

Document data further showed that the total debt negotiated for the five companies was 4.689 billion, the total payment to date was $ 3.534 billion, while the outstanding balance was $ 1.154 billion .

Calls for funds are sent by cooperators to non-operational partners for payment in light of expected future capital, operating expenses or the need for additional capital contributions.

The federal government, through the NNPC, had accumulated over the years of unpaid bills, called fundraising, he was obliged to pay the IOC with whom he had joint ventures for oil exploration and production .

Industry analysts said the late payments had hampered oil and gas investment in Nigeria, but praised the government and NNPC for paying off debts.

In 2016, the national oil company signed the cash call reimbursement agreement with the five IOCs to cover arrears of cash calls within five years after many years of indebtedness to JV partners. .

In addition, the government, through the Federal Ministry of Petroleum Resources, negotiated a discount with the five IOCs in December 2016.

Negotiations led to debt reduction from about $ 5.1 billion to $ 4.68 billion, as the government has since continued to cut debt payments in installments.

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