The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru has disclosed that it has so far settled over $2 billion cash call arrears out of the $5 billion Nigeria owes joint venture (JV) partners since 2015.
The NNPC boss explained that the oil corporation gave priority to settling the arrears to encourage players in the industry particularly the traditional joint venture, JV partners.
The corporation’s boss according to This Day Live made this known while declaring open the 2019 Nigeria Oil and Gas Conference and Exhibition (NOG) under the theme: ‘’Promoting Investment and Collaboration in Nigeria’s Oil and Gas Industry,’’ saying that efforts were geared towards sustaining investment in the oil industry and renewing investors’ confidence.
He said, “to encourage the existing players in the industry particularly the traditional JV partners, NNPC undertook to settle all outstanding cash call arrears amounting to $5 billion in 2015. Till date, we have defrayed over $2 billion. All these efforts are geared towards sustaining investment and renewing investor confidence”.
He further added that the corporation has created a platform in the oil and gas sector to explore a vast range of investment opportunities, which span the value chain. He also listed the opportunities to include merger and acquisition, pseudo equity type transactions, provision of drilling rigs and related services, heavy equipment leasing, seismic acquisition and processing, reservoir engineering and field development studies as well as core engineering services.
In addition, while commenting about the event, he mentioned that over the years, the NOG had defied several odds to emerge as an important conference and exhibition in the calendar of the Nigerian oil and gas industry by providing an invaluable platform for the cross ventilation and fertilisation of innovative ideas across the value chain of business.
Meanwhile, he also explained that the corporation had in the last three years been active in the capital market, accessing financing for different projects, which have sustained the industry’s momentum. According to him, Nigeria holds about 2.2 per cent of global oil reserves while the nation’s crude oil reserves have grown steadily from about 22 billion barrels in 1999 to 37.5 billion barrels in 2018.
Besides, Nigeria is also home to the second largest crude oil reserves in Africa after Libya. While commending NOG 2019, Baru said that it was an opportunity for industry players and stakeholders to collaborate to find workable solutions to issues that confront challenges in the oil sector.