Nigeria’s Oil Corps pays $1.5b cash call arrears

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The Group General Manager (GMD), Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, yesterday said the corporation has paid $1.5billion out of the $5billion cash call exit to Joint Venture (JV).

He said the Joint Venture Cash Call exit settlement was negotiated for 2016 , adding that the state-run oil firm also championed indigenous cash exit, self- funding. Baru said so far, over $1.5billion out of the $5.1billion cash call arrears to date has been paid.

The development, according to him, has not only restored the confidence of International Oil Companies (IOCs), JV partners in the country, it has also led to reserves growth and improved oil production.

Represented by the Chief Operating Officer at NNPC, Mr. Bello Rabiu at the 12th Annual International Conference of the Nigerian Association for Energy Economics (NAEE), in Abuja, Baru said: “In 2018, which was the second year in the roll, we concluded the fiscal year without any cash call arrears.”

The theme of the conference was: Energy Access and Efficiency Imperatives for Sustainable Development in Emerging Economies.

Baru said the development resulted in the corporation not recording any cash call arrear last year.

Meanwhile, NAEE President, Prof. Wumi Iledare, who had at the weekend advised Nigeria to heed the advice of the International Monetary Fund (IMF) to stop oil subsidy, said it was to forewarn the country of retrogression.

He said: “In my opinion, benefits from petrol subsidy of over 40 years compare to the cost are not comparable. I stand to be corrected that the cost to the economy of petroleum subsidy is significantly higher to benefits. Subsidy is a gorilla to the Nigeria economy and something has to be done. Otherwise, Venezuala is knocking at the door and it is not a good experience.”

Baru said in the last year, Nigeria’s national average daily crude oil production stood at about 2.019 million barrels.

This volume, according to him, translates to an increase of nine per cent above the 2017 average of 1.86 million barrels and comes as significant improvement from the unimpressive production levels recorded on my assumption of office in July, 2016.

To underline this, Baru said the the NPDC last year posted a production growth of 52 per cent compared to 2017, from an average of 108mbod in 2017 to 165mbod in 2018.

Commenting on petrol supply, the NNPC chief said the corporation was able to arrest the petrol scarcity that attended the rumoured plan to increase pump price by last Friday, as the corporation flooded the retail outlets nationwide with the product.

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