The cash call arrears owed oil companies
by the Federal Government have swollen to over $8.5bn (N2.6tn), a
development that has seen the government making moves to exit the Joint
Venture cash call system.
The Group Managing Director, Nigerian
National Petroleum Corporation, Dr. Maikanti Baru, disclosed this on
Tuesday at the Nigerian Association of Petroleum Explorationists’ 34th
Annual International Conference and Exhibition in Lagos.
The nation’s oil and gas production
structure is split between JV onshore and in shallow waters with foreign
and local companies, and Production Sharing Contracts in deep water
offshore.
The NNPC owns between 55 per cent of the
JVs with Shell and 60 per cent of all the others, and the JVs are
jointly funded by the private oil companies and the Federal Government
through the corporation.
