The Nigerian National Petroleum Corporation, NNPC, Wednesday, said it has fully settled the total amount owed to Mobil Producing Nigeria, MPN, with a payment of $833.57 million. Baru Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, This, according to a statement by the NNPC in Abuja, was barely two years after the corporation signed a Vash-call Repayment Agreement with its Joint Venture, JV, partners to defray cash-call arrears within a period of five years.
Speaking at the commemorative close-out ceremony to mark the conclusion of NNPC/MPN Cash Call Repayment Agreement, Managing Director of the NNPC, Dr. Maikanti Baru, disclosed that the feat was a product of determination and hard work.
Baru stated that NNPC management came up with the novel cash-call exit strategy to boost investors’ confidence and grow the nation’s oil and gas industry, adding that the payment did not in anyway undercut remittances to the Federation Account as it was achieved through revenue from incremental production.
“It is gratifying to note that within two years of this agreement, the NNPC/MPN JV significantly executed in incremental activities that generated adequate proceeds to liquidate the $833.57 million cash-call arrears, whilst ensuring that revenue flow from the JV to the Federation remained stable”, Baru stated.
He explained that with the close-out of the repayment agreement, the entire incremental production which is over 45,000 barrels of oil per day (bopd) has been migrated to Federation’s equity and would invariably lead to an increase in revenue to the Government.