Nigerian National Petroleum Corporation’s (NNPC’s ) debt overhang in cash calls to multinational and indigenous oil companies it operates Joint Venture (JV) project with, has reached about $7billion, it was learnt at the weekend.
Cash calls is the counterpart funding the NNPC pays yearly for the 60 per cent equity shareholding it owns in various oil and gas fields operated by International Oil Companies (IOCs) and indigenous oil firms (independents).
The Corporation has over the years been battling to clear the cash call arrears, which have been revolving around $5 billion.
The Federal Government said it is determined to settle the arrears to the operators of the various JVs, the Minister of State for Petroleum Resources and NNPC Group Managing Director, Dr Ibe Kachikwu, has said.
However, it is feared that the prevailing low oil price regime, which has reduced the nation’s revenue from oil, may prevent the government from accomplishing its desire to settle the $7billion debt .
It was learnt that as at January this year, NNPC owed the IOCs cash call arrears of $5.5 billion, while their indigenous counterparts are being owed $1.1 billion, and an estimated $400 million that would have accrued between January and now.
*Originally published by TheNation
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