The Federal Government (FG) has paid a total of $3.53 billion to five International Oil Companies (IOCs) as cash call arrears repayment to the IOCs, leaving an outstanding balance of $1.15 billion.
The latest status report on the Pre-2016 Cash Call Arrears Repayment to the IOCs as of October 31, 2021, showed that the five oil companies were joint venture partners of Nigeria’s oil firm.
International Oil Companies owed money
The status report, which was obtained from the Nigerian National Petroleum Company (NNPC) Limited, outlined the five IOCs to include Shell Petroleum Development Company (SPDC), Mobil Producing Nigeria (MPN) and Chevron Nigeria Limited.
Others include Total Exploration and Production Nigeria and Nigeria Agip Oil Company.
Figures from the document indicated that the FG had completed the cash call repayments to MPN and CNL.
It was observed that the total negotiated debt and total payment to of MPN was $833.75 million, while the total negotiated debt and total payment of CNL was put at $1.097 billion.
For SPDC, data from the latest repayment report showed that while the total negotiated debt was $1.37bn, the total payment to date was $680.6m, leaving a balance of $691.91 million.
The government’s total payment to date to TEPNG was put at $411.73 million out of a total negotiated debt of $610.97m, while the outstanding balance was put at $199.24 million.
NAOC had so far been paid $511.02 million. The oil firm’s total negotiated debt with the Federal Government through NNPC was $774.66m, while the balance accruable to the IOC was put at $263.64 million.
Data from the document further showed that the total negotiated debt for the five firms was $4.689 billion, the total payment to date stood at $3.534 billion, while the outstanding balance was $1.154 billion.
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.
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.
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