FEDERAL GOVERNMENT

A cash-call exit agreement between the Nigerian National Petroleum Corporation and Joint Ventures partners, the Federal Government has saved about One point Seven billion dollars which will repay the Cash Call arrears of five point one billion dollars within five years.

These facts are contained in a document titled “The new JV Self-Funding Model/ Cash Call Exit: Issues and implications”, which has been presented to the Federation Account Allocation Committee (FAAC) by the Nigerian National Petroleum Corporation (NNPC).

A critical part of the document, borders on “Key Negotiated Terms” on the lingering JV Cash Call arrears which were part of issues discussed at the November 21 session of the FAAC Post-Mortem Sub-Committee meeting.

The NNPC and its Joint Venture partners which are Shell, Total, Chevron, ExxonMobil, Nigeria Agip Oil Company (NAOC) and Oando had on December 15, 2016 signed a cash-call exit agreement.

At the ceremony, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said with the agreement, the Upstream petroleum sector will soon be upbeat in a flurry of activities