Nigeria Pays International Oil Companies $3.7 Billion, Owes $972 million

Nigeria Pays International Oil Companies $3.7 Billion, Owes $972 million

  • The Nigeria National Petroleum Corporation (NNPC) says it has paid about $3.7 billion to international oil companies
  • The debts are cash call areas to the international oil producing companies which stood at $4.689 billion
  • Cash call are sent by oil companies which are in partnership with the Nigerian government for payment in expectation of future capital contributions

Nigeria has paid international oil companies the sum of $3.7 billion as part of its cash call areas to five international oil firms with a total of $971.8 million still outstanding.

According to the Punch, data from Nigeria National Petroleum Company (NNPC) shows that the five international companies are Shell Petroleum Development Company, Mobile Producing Nigeria, Chevron Nigeria, Total Exploration and Production Nigeria, and Nigeria Agip Oil Company.

Read also

Largest bank by customer deposit as Nigerians keep over N37.63trn in 9 commercial banks

NNPC, International oil companies
NNPC Managing Director, Mele Kyari
Source: Twitter

What cash calls are

Reports say that Nigeria’s cash call areas to the companies stood initially at $4.689 billion prior to the reduction to the current amount of $971.8 million.

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

Cash calls are transmitted by joint venture operators non-oil partners for payment in the light of the expected future capital contributions.

The Nigerian government via NNPC has piled up unpaid billions which are known as cash calls, which is was meant to pay to the companies with whom it operates a joint partnerships with for oil prodction and exploration.

The Federal Government through NNPC had over the years piled up unpaid bills, referred to as cash calls, which it was obliged to pay the IOCs with which it had joint ventures for oil exploration and production.

Huge debt to oil companies by NNPC

Read also

Nigeria spends N896.56 billion on debt servicing in 3 months

According to the NNPC, it had cleared its debt with both the MPN and CNL that were put at $833.75 million and $1.097 billion respectively.

The NNPC owed SPDC, TEPNG and NOAC the sum of $1.37 billion respectively and had paid $777.4 million, $458.91 million anf $550.01 respectively.

This leaves an outstanding balance of $595.1m to SPDC, $152.06m to TEPNG and $224.65m to NAOC.

NNPC sets date for completion of Port Harcourt refinery after spending over N539bn for repair works reported that Mele Kyari the Group Managing Director of the Nigeria National Petroleum Company (NNPC) has promised that the Port Harcourt refinery would be ready by March 2023.

He made the promise before the House of Representatives on the resumption of investigation on the state of the country’s refineries.

When asked, Kyari, who was represented by the General Manager, Refineries & Petrochemicals, Mustapha Yakubu reaffirmed to the lawmakers on the expected date of completion.


Online view pixel