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FG to settle JVC cash call debt with $5bn crude
The Federal Government has reached an agreement with international oil companies to settle its joint venture cash call with crude oil worth $5 billion.
The crude payment will bye spread over the next five years according to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in an interview with Financial Times on Tuesday.
The cash call settlement covers outstanding JVC debt for 2010 to 2015.
Though the debt profile is said to be around $6 billion, a figure the Nigerian National Petroleum Corporation, NNPC, has always disputed, the deal will save the nation $1 billion.
Read also: Obasanjo, Ya’adua, Jonathan blew N70trn, NEITI laments
Kachikwu also disclosed that the international oil companies involved are Royal Dutch Shell, ExxonMobil, Eni,Chevron and Total, while the $1 billion already owed for this year would be paid in one off cash payment by the Federal Government.
The Financial Times report also stated that the oil companies have signed the agreement awaiting the approval of two regulatory agencies and President Muhammadu Buhari.
“The settlement had been accepted by the five companies. It is hoped the deal can be finalised before the end of the year,” the report quoted Kachikwu.
By Timothy Enietan-Matthews
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JOHNSON PETER
November 9, 2016 at 10:50 am
At least instead of paying $1billion cash which might affect the economy badly , it’s better we pay with our resources. Wise decision there.
The money can be used to finance other giant projects of 2016 budget.
yanju omotodun
November 9, 2016 at 11:02 am
It’s an unwise decision if you don’t know. Don’t you know the amount of money they will realise from selling the crude oil will tripple what they borrowed us?
Sincerely we have bunch of idiots as cabinet members of buhari.
Amarachi Okoye
November 10, 2016 at 1:29 pm
My dear if selling the crude oil will make our economy a better one no problem all we need is our economy should be better and buhari and his cabinet should make our economy a success
Amaka Okoro
November 10, 2016 at 1:23 pm
You are right because we need a project that will save us from economy crisis
Roland Uchendu Pele
November 9, 2016 at 11:02 am
The Federal government is owing five companies, including Shell, such a huge sum, and had the effrontery to ask Shell to pay a fine some months ago?
Animashaun Ayodeji
November 9, 2016 at 11:48 am
That is why it is called Federal Government! They can do and undo.
chichi emerue
November 9, 2016 at 4:30 pm
Federal government for month them done see mumu wa them go shop ndi ara