The Federal Government has shifted the deadline for the exit of the joint venture (JV) cash call arrangement with oil companies to the end of this year, The Punch reports.

The Ministry of Petroleum Resources, in the new National Petroleum Policy approved by the Federal Executive Council last week said; “Under the petroleum policy, all cash call arrangements under the NNPC JVs will be exited, with a target of exiting all of them by the end of 2017. The target is to move them to a PSC or incorporated JV arrangement.”

The government failed to exit the JV cash call arrangement in January in line with the agreement it reached with the international oil companies in December last year. It however said the government’s interest in the upstream sector of the oil and gas industry would consist of incorporated JVs, production sharing contracts (PSCs) currently under the 20-year production phases and the PSCs at exploration phases.