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Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B (5551 Views)

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Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by jonhemma11: 4:27pm On Dec 15, 2016
PRESS STATEMENT

MINISTRY OF PETROLEUM RESOURCES ENDS 2016 ON A HIGH AS KACHIKWU SIGNS LANDMARK AGREEMENT

NEW CASH CALL POLICY INCREASES FG’S ANNUAL REVENUE BY $2B

…IOCs AGREE TO ARREARS REPAYMENT FRAMEWORK AS NET REVENUE IS EXPECTED TO INCREASE TO $14B BY 2020

In a move which will restructure the financing template for oil earnings, increase investments and boost government revenues, the Minister of State, the Federal Government has reached agreement on a new cash call exit policy with the international oil companies (IOCs).

The historic agreement which will bring clarity and stability to the management of the country’s main revenue source was announced by the Minister of State, Petroleum Resources while giving an account of key achievements of the Ministry in 2016 yesterday has already received the approval of the Federal Executive Council.

It is part of new measures and strategies aimed at eliminating the burden of Joint Venture Cash Call arrears and securing future funding for the Upstream Petroleum Sector.

These strategies which are fully supported by the National Economic Council (NEC) will lead to an increase in national production from the current 2.2mbpd to 2.5mbpd by 2019, as well as reduction in Unit Technical Costs from $27.96/Barrel Oil Equivalent (boe) to $18/boe.

The net payments to the Federation Account is expected to double from about $7Billion to over $14Billion by 2020 and the immediate effect of the new cash call policy will increase net FGN Revenue per annum by about $2billion.

Dr. Kachikwu outlined other innovations and initiatives championed by the ministry over the past year which have revamped the sector, restored investors’ confidence which was at an all-time low and positioned Nigeria’s Oil and Gas value chain for profitability.

It would be recalled that based on historical records, the current Cash Call system has been structurally defective and has failed to address the perennial Joint Venture funding challenges being experienced in the industry where the Federal Government underfunding of the industry through JV Cash Calls stood at $9.125 billion by September 2016. This arrangement will guarantee payments of statutory Oil and Gas Royalties and taxes by NNPC and its JV partners as well as profit from its investments in the Joint Ventures.

At US$42.5 per barrel Oil price which the 2017 budget is predicated on and US$24 per barrel fiscal cost recovery proposed for 2017 in FGN Medium Term Expenditure Framework (MTEF) recently submitted to NASS, over US$13 per barrel will accrue to Government as Royalties & Taxes from Joint Venture Oil and Gas Production apart from US$2.8 per barrel estimated as Government share of profit, at 57% equity.
This will restore investors’ confidence and achieve accelerated production growth in the Joint Ventures. New Governance processes will also be introduced.

The negotiation on behalf of the Federal Government of Nigeria which was led by Dr. Kachikwu resulted in a remarkable agreement by the IOCs who have agreed to be paid their accumulated arrears up to December 2015, payable over the period of about five years. It is important to note that this will not be a cash burden on the Federal Government as payments will be made via incremental production from each JVC.

Aside this key agreement on Joint Venture Cash Call Arrears Payment and Future Funding Mechanism signed today, it would be noted that under the stewardship of Dr. Emmanuel Ibe Kachikwu as Minister of State for Petroleum Resources and leadership of President Muhammadu Buhari, the Ministry has also made considerable accomplishments in the international frontiers through maintaining robust relationships and strengthening linkages within and outside the petroleum producing community.

Achievements recorded in 2016 include the following:

1. Successful tenureship and handover of the Presidency of four key international energy organisations namely:
- The Gas Exporting Countries Forum (GECF)
- Organisation of Petroleum Exporting Countries (OPEC);
- African Petroleum Producers Association (APPA); and
- West African Gas Pipeline Authority (WAGPA).

2. Successful election of Mohammed Sanusi Barkindo of Nigeria as  the Secretary - General of the OPEC

3. Successful mobilization of OPEC members and Non-OPEC Oil Producers to dialogue on the stabilization of the global market in Doha; Algiers which culminated into the achievement of freeze on production at the 171st conference in Vienna

4. Rise in oil prices to US$55/per barrel for the first time in 16 months after negotiations with non-OPEC producers

5. Nigeria's successful negotiation of an exemption from the production freeze;

6. Successful hosting of the 52nd Conference of Ministers of African Petroleum Producers Association in March 2016 (APPA);

7. Provided leadership and support to other APPA members in the development of legislation, institution and systems for local content in Africa

Finally, The Minister of State pledged that the Ministry will continue to drive innovation and change in its approach to delivering an oil and gas industry that is internationally competitive and is governed by open and transparent processes to ensure security of investment for both domestic and international investors.

Idang Alibi
Director, Press
Ministry of Petroleum Resources
December 15, 2016

cc; Lalasticlala,mynd44

Source: http://www.trezzyhelm.com/2016/12/ibe-kachikwu-signs-joint-venture-cash.html?m=1

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by jonhemma11: 4:27pm On Dec 15, 2016

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by unclezuma: 7:34am On Dec 16, 2016
FTC now I can go back to work...
I hope this will help in revising the downward trend of disengagement...
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Mbamally(m): 7:35am On Dec 16, 2016
God Bless Nigeria
God Bless Baba Buhari
God Bless Kachikwu
God Bless Nigerians
.
.
except MMM grin

modified*
the poster below me.

To build good roads ?? (YES)
To feed the poor ?? (YES)
To provide 24 hour electricity ?? (YES)
To better the economy ?? (YES)

so get the fvcck out of here....

13 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Nobody: 7:36am On Dec 16, 2016


Useless

What will the money be used for ??

To build good roads ??

To feed the poor ??

To provide 24 hour electricity ??

To better the economy ??

Fucck out of here with that bullshit

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Nobody: 7:36am On Dec 16, 2016
They can increase the revenie by 100B nothing will change
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by sainty2k3(m): 7:36am On Dec 16, 2016
Really? Thanks to shell o. Hope u guys will now pay our November salary
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by AnusOdourInhaler: 7:37am On Dec 16, 2016
Love him or hate him, this Kachiku dude is working

8 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by sakalisis(m): 7:38am On Dec 16, 2016
Ok
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by mccoy47(m): 7:38am On Dec 16, 2016
Ok oo. More money for Kyari to use in clearing grass undecided

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Lanre4uonly(m): 7:40am On Dec 16, 2016
That's good. Let's wait and see how it will unfold.

2 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by overall90: 7:41am On Dec 16, 2016
I hope the deal is for the oil discovered in Bornu , Benue and Lagos.
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Atiku2019: 7:42am On Dec 16, 2016
Kachikwu the Best Minister Minister under an Incompetent President smiley
Kudos to Kachikwu....

6 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Atiku2019: 7:43am On Dec 16, 2016
mccoy47:
Ok oo. More money for Kyari to use in clearing grass undecided

Including Babachir Lawal and Buratai cry cry

2 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by danduchi(m): 7:45am On Dec 16, 2016
Sign the agreement and begin to make our LOCs (Local Oil Companies) as alternative to them come 2021. Nice move sha
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by chukwundukc(m): 7:45am On Dec 16, 2016
we will get there gradually only when our leaders becomes selfless
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by FredN(m): 7:47am On Dec 16, 2016
Kachikwu remains the best brains in buhari "party of fools" government

Hus achievements are outstandingly innovative. It is a testament to his pure genius and his ExxonMobil background.

7 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Glocks: 7:56am On Dec 16, 2016
The only relentless Working minister

5 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Pottijef(f): 7:57am On Dec 16, 2016
Good move by the federal government

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by mikidolla(m): 7:58am On Dec 16, 2016
It's not the issue.. After increasing the revenue and there are still bad roads, no industries to absorb the millions of corpers every year and one person will loot trillions of naira.

God help Naija.

MMM 2017 loading... grin grin
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by echelons(m): 8:03am On Dec 16, 2016
The only meaningful thing I'm seeing on their 7-point achievement are just the 3rd and 5th point. Number 4 is a fallout of number 3 so both are meant to be on the same line.

Others are quite useless.

Being elected as OPEC sec gen doesn't add anything to anything, Dieziani was elected OPEC chairman too yet nothing happened.

Hope the New JV cash call or whatever jargon there are using is worth it for the masses.
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Mayflowa(m): 8:04am On Dec 16, 2016
AnusOdourInhaler:
Love him or hate him, this Kachiku dude is working

Yes because he is a good fit for his profile. He is an Harvard law graduate who specialisation is in oil and gas. So he was able to understand the language of oil production and marketing and matched the IOCS executives' intelligence.

They had no choice than to come to terms with him. FG should look into qualification when appointing people to Ministries.

2 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by AnusOdourInhaler: 8:12am On Dec 16, 2016
Mayflowa:


Yes because he is a good fit for his profile. He is an Harvard law graduate who specialisation is in oil and gas. So he was able to understand the language of oil production and marketing and matched the IOCS executives' intelligence.

They had no choice than to come to terms with him. FG should look into qualification when appointing people to Ministries.
That's it.. You have said all
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Qmerit(m): 8:14am On Dec 16, 2016
AfonjaStinks:


Useless

What will the money be used for ??

To build good roads ??

To feed the poor ??

To provide 24 hour electricity ??


To better the economy ??

Fucck out of here with that bullshit


Exactly useless

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by Sammypope4all(m): 8:23am On Dec 16, 2016
#KACHUKWU. The best and the only good thing that comes out of this present government. He not only knows how fix himself up ( wardrobe sense) he also, among other things, knows how to cut good deal.

I hope the money gotten from here wouldn't be used for some persons honeymoon. I no mention name oo
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by scobaba: 8:37am On Dec 16, 2016
Me chairman, Me MD and Me General Manager Finance( baba lefty) i see you guys.
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by DropShot: 8:39am On Dec 16, 2016
Glocks:
The only relentless Working minister
Wow, some of you are just myopic and unnecessarily petty.

Kachiukwu, Adeosun, Aminah Muhammed, Ameachi and Fashola are workaholic in this govt. And they are so because of the president they're working under.

2 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by googlepikins: 8:39am On Dec 16, 2016
Where are Avengers when we need them.
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by DropShot: 8:42am On Dec 16, 2016
Atiku2019:
Kachikwu the Best Minister Minister under an Incompetent President smiley

Kudos to Kachikwu....
Dice it whichever way you like, Kachiukwu and other performing ministers are a product of PMB and whatever they do must have received PMBs approval.
So, stop being childish and petty.

Some of you act like stark illiterate.

2 Likes

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by khattab008: 8:44am On Dec 16, 2016
Hopefully Total/NNPC awardees can now be paid.
Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by feelamong(m): 8:47am On Dec 16, 2016
This life sha...

A few moons ago many here wanted to kill Kachikwu when there was that wicked Fuel scarcity...

many called him all sorts of names that even Tinubu called for his Removal but PMB did not listen to them all...

How Time Flies!!

Kudos to kachikwu!!

Kudos to PMB!!!

1 Like

Re: Kachikwu Sign Joint Venture Deal Wit Shell,Chevron To Increase FG Revenue By $2B by lafuria1(m): 9:06am On Dec 16, 2016
I thought Kachikwu is an errand boy and the gmd of NNPC is more important. Ignorance is a disease

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