NNPC and other companies sign agreement to exit Joint Venture Payment

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NNPC and other companies sign agreement to exit Joint Venture Payment

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By Akinwande OnadekoAn agreement deal was signed by the Nigerian National Petroleum Corporation (NNPC) to exit the Joint Venture Cash Call (JVC) with some foreign oil companies.
Nigerian National Petroleum Corporation (NNPC)

Nigerian National Petroleum Corporation (NNPC)

The agreement was signed at the Ministry of Petroleum Resources between the federal government and Shell, Chevron, Oando, Total and Agip at Abuja.The nation had an estimated debt of $6.8 billion over a period of 14 years but received a discount of $1.7 billion, leaving a debt of $5.1 billion to be repaid.Ibe Kachikwu, the Minister of State for Petroleum expressed joy over the signed agreement, saying it would bring more investments into the country.He also said lots of work and political determination had gone into the nation’s exit from the JVC’s debt.”˜If we continue to focus on things that haven’t worked in a long while, we’ll get this industry on its way to competing favourably with other counterparts. I challenge the oil companies to put their monies where their mouth is because they said once this is done; investments would begin to come into the country.’”˜I must also appreciate President Buhari for supporting the effort and for his willingness to steer the cause’, Mr. Kachikwu said.Group Managing Director, NNPC, Maikanti Baru, said that the agreement was aimed at addressing long standing issues of unpaid call arrears, under-funding the joint venture and the burden of monthly payments by the Nigerian government.

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