International Oil Companies Receive $1.5bn from Nigeria’s State Oil Firm in Cash Call Debts

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The Nigerian National Petroleum Corporation says it has reduced cash call arrears owed to international oil companies, its Joint Venture partners, by $1.5bn. The corporation has cash call arrears of $5.1bn, a report by Punch Newspaper confirmed.

Group Managing Director of NNPC, Dr Maikanti Baru, said this at the 12th National Conference of the Nigerian Association for Energy Economics/International Association for Energy Economics, in Abuja on Monday.

He also disclosed that 783 million Standard Cubic Feet of gas per day was flared in 2018.

Baru said that 2018 marked the second year without the corporation incurring any cash call arrears.

Baru said, “So far, we have repaid over $1.5bn out of the $5.1bn cash call arrears to date, a development that has not only restored the confidence of international oil companies, IOC, JV partners, but has also led to improved reserves growth and crude oil production.

“It was quite fulfilling that in 2018,  that is for the second year in a row,  we concluded the fiscal year without any cash call arrears.”

He said that the average of 783 million SCF of gas per day was flared in 2018 was 2.9 percent higher than 761mmscfd supplied to the power sector within the same period.

According to him, in 2018 the national average daily gas production stood at 7.90bn Standard Cubic Feet, representing an increase of three percent above 2017 average daily gas production of 7.67bn SCF.

 

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