Thursday, September 19, 2019
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The total amount of money so far given to International Oil Companies (IOCs) operating in Nigeria by the Nigerian National Petroleum Corporation (NNPC) in repayment for the discounted $5.1 billion cash call debt owed to them has been put at $1 billion.

NNPC’s Group Managing Director, Dr. Maikanti Baru, disclosed this much in an address to the staff of the corporation in commemoration of his two years in office as head of the state oil corporation.

His disclosure of this in the message was contained in a statement Thursday in Abuja by the Group General Manager, Public Affairs of NNPC, Ndu Ughamadu.

In the statement, Baru said his management of the corporation had been successful so far. He listed some of his achievements within the period, which he noted included the payment of the cash call debts to the IOCs amongst others.

According to him, the NNPC under him had done well in its upstream oil business and so far maintained a two-million barrels per day (mbd) oil production level in 2018.

“Aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First E&P JV which is expected to deliver a peak production of 50kbopd and 120mmscfd by 2019, the corporation had maintained commitment to repayment of cash calls arrears where about $1 billion of $5 billion indebtedness has been settled,” Baru, was quoted to have said in the statement.

His disclosure suggested that the corporation still had about $4.1 billion to pay off in the negotiated cash call arrears. Although, part of the agreements reached with the IOCs in this regards was that the repayment will be based on incremental oil production.

Notwithstanding, the IOCs have expressed delights at the repayment process which the NNPC reportedly started more than a year ago, stating also that with it, they now have some level of confidence to go on with their investments in the country’s oil industry.

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