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NNPC pays $3.68bn debt to five oil businesses, $1bn still outstanding

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The Nigerian National Petroleum Company (NNPC) has paid over $3.68 billion in cash call debt to five oil companies.

The payment is part of NNPC’s total debt to its joint venture partners put at $4.689 billion.

According to the new data from NNPC, among the five International Oil Companies (IOCs) being owed the backlog, Mobil Nigeria Producing and Chevron Nigeria Limited (CNL) have been fully paid.

While the other three Shell Petroleum Development Company, Total Exploration and Production Nigeria, and Nigeria Agip Oil Company are still being owed.

The outstanding balance of NNPC to the three firms, as captured in the March 2022 report is $1.01bn as of December 31, 2021.

What is Cash call

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.

Read also: More pains for states as NNPC withholds N328bn from federal account in April

The Federal Government through the 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.

Breakdown of the debt

NNPC data shows Shell is owed $1.37 billion out of which $777.4 million has been paid with a balance of $595.1m.

TEPNG outstanding debt is $164.6m out of $610.97 million.

NNPC data also shows NAOC was paid $522.6 million out of $774.6 million.

The report also stated that NNPC had cleared the $833.75m and $1.097bn renegotiated debts to MPN and CNL respectively.

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