The Nigerian National Petroleum Corporation (NNPC) has so far paid $1.5 billion out of the negotiated $5.1 billion joint venture (JV) cash call debt it owes International Oil Companies (IOCs) operating in Nigeria.
The corporation’s Group Managing Director, Dr. Maikanti Baru, made the disclosure according to a statement issued by the Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja. NNPC also stated that the cost of producing a barrel of crude oil from oil fields in Nigeria has been cut down from $27 per barrel in 2017 to $22.
Baru was quoted to have said these in a comprehensive end of year message to staff of the corporation.
He also said Nigeria’s daily oil production recorded an upward swing of about 2.09 million barrels (mb) in 2018, translating to a 9 per cent increment when compared with the 2017 average daily production of 1.86mb.
He explained that the corporation saved $1.7 billion from its negotiation of the JV cash call debt, adding that the plan to pay it off over a five-year period would be upheld. According to him, the NNPC would transition from the joint venture cash call framework to self-funding incorporated joint venture (IJV) modes with its partners.
Source: THIS DAY