Nigeria reverse plan to sell stakes in Oil Majors’ Joint venture assets

Date:

Nigeria government has failed to carry out its planned sale of some of its stake in joint venture oil assets.

Thank you for reading this post, don't forget to subscribe!

The federal government did not include the sale of the JV oil asset stakes as a source of expected revenue in the highlights of the 2020 budget presented by the Minister of Finance, Budget and National Planning.

The 2019 approved budget presentation revealed that the President Muhammadu Buhari, had directed that immediate action be commenced to restructure the JV oil assets “so as to reduce government shareholding to not less than 40 per cent and that this exercise must be completed within the 2019 fiscal year.”

The document said, “The overall revenue performance in 2018 is only 55 per cent of the target in the 2018 budget partly because some one-off items such as the N710bn from Oil Joint Venture Asset restructuring and N320bn from revision of the Oil Production Sharing Contract legislation/terms have yet to be actualised and have thus been rolled over to 2019.

“We have again reflected projected proceeds from oil assets ownership restructuring as revenues for transparency and monitoring. Expected funds have been earmarked to fund critical capital projects as this was not achieved in 2018.”

The nation’s oil and gas production structure is majorly split between the JV onshore and in shallow water with foreign and local companies and the PSC in deepwater offshore, to which most international oil companies have shifted their focus in recent years.

The Nigerian National Petroleum Corporation owns 55 per cent stake in its JV with Shell and 60 per cent stakes with others, including Chevron and ExxonMobil.

Under the JV arrangement, both the NNPC and private operators contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio.

The Buhari-led regime had in its Economic Recovery and Growth Plan released in 2017 said it would reduce its stakes in JV oil assets, refineries and other downstream subsidiaries such as pipelines and depots.

Adeniyi Ogunfowoke
Adeniyi Ogunfowokehttps://naija247news.com/
**Senior Correspondent Profile: Adeniyi Ogunfowoke** Adeniyi Ogunfowoke is a seasoned Senior Correspondent at Naija247news.com, bringing a wealth of journalistic expertise to the dynamic landscape of news reporting. With an extensive background in the field, Adeniyi has consistently demonstrated a commitment to delivering insightful and compelling stories to Naija247news.com's diverse readership. **Professional Background:** Adeniyi Ogunfowoke has amassed a wealth of experience in journalism, having covered a myriad of beats over the years. His versatile reporting style reflects a deep understanding of socio-economic issues, politics, and global affairs, providing Naija247news.com readers with a comprehensive perspective on current events. **Areas of Expertise:** As a Senior Correspondent, Adeniyi specializes in investigative reporting, offering in-depth analyses that go beyond the surface of news stories. His keen eye for detail and ability to connect the dots in complex narratives make him an invaluable asset to Naija247news.com. **Notable Achievements:** Throughout his career, Adeniyi Ogunfowoke has received recognition for his outstanding contributions to journalism. His bylines have become synonymous with well-researched, informative, and thought-provoking articles that resonate with a broad audience. **Commitment to Excellence:** Adeniyi's commitment to journalistic integrity is evident in his dedication to delivering accurate and timely news. His work reflects the core values of Naija247news.com, emphasizing credibility, transparency, and a commitment to keeping the public well-informed. **Engagement and Impact:** In the digital era, Adeniyi understands the importance of engaging with readers. His articles not only inform but also spark conversations, fostering a sense of community and dialogue among Naija247news.com's audience. **Future Endeavors:** As a Senior Correspondent, Adeniyi Ogunfowoke continues to set high standards for journalistic excellence. His future endeavors include exploring emerging trends in media, staying ahead of the news curve, and contributing to Naija247news.com's ongoing success as a trusted source of information. Follow Adeniyi Ogunfowoke's insightful reporting on Naija247news.com for a nuanced understanding of current affairs, backed by experience, dedication, and a passion for uncovering the untold stories.

Share post:

Subscribe

Popular

More like this
Related

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...

Thirteen Residents Arrested For Failing To Use Pedestrian Bridge in Lagos

March 28, 2024. Azonuchechi Chukwu. Thirteen residents in Lagos state have...

Dangote budgets N15bn for food intervention across Nigeria

March 28, 2024. Azonuchechi Chukwu The Aliko Dangote Foundation, (ADF) has...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading