The Federal Government has paid a total of $3.53bn to five international oil companies (IOCs) as cash call arrears repayment with an outstanding balance of $1.15bn.
The latest status report on the Pre-2016 Cash Call Arrears Repayment to the IOCs as of October 31, 2021, indicated that the five oil companies were joint venture partners of the country’s oil firm.
The report was obtained from the Nigerian National Petroleum Company Limited (NNPC).
It listed the five IOCs to include Shell Petroleum Development Company (SPDC), Mobil Producing Nigeria (MPN), Chevron Nigeria Limited (CNL), Total Exploration and Production Nigeria (TEPNG), and Nigeria Agip Oil Company (NAOC).
Figures from the document implied that the Federal Government had completed the cash call repayments to MPN and CNL.
It was observed that the total negotiated debt and total payment to the date of MPN were $833.75m, while the total negotiated debt and total payment to the date of CNL were put at $1.097bn.
For SPDC, the total negotiated debt was $1.37bn, the total payment to date was $680.6m, with a balance of $691.91m.
The government’s total payment to date to TEPNG was put at $411.73m out of a total negotiated debt of $610.97m, while the outstanding balance was put at $199.24m.
NAOC had so far been paid $511.02m. The negotiated debt with the Federal Government through NNPC was $774.66m, while the balance accruable to the IOC was put at $263.64m.
Cash calls are sent by joint venture operators to non-operating partners for payment in the light of anticipated future capital, operating expenditures, or the need for additional capital contributions.
The Federal Government had over the years piled up unpaid bills, through the NNPC. This is referred to as cash calls, which it was obliged to pay the IOCs with which it had joint ventures for oil exploration and production.
Though industry analysts noted that the delay in payments had impeded oil and gas investment in Nigeria, they applauded the government and the NNPC for the repayment of the debts.
