International Oil Companies (IOCs) operating in Nigeria’s oil industry have commrended the Nigerian National Petroleum Corporation (NNPC) on the payment of all thejoint Venture (JV) cash calls arrears.

They made the commendation at the on going Nigerian Oil and Gas Conference and Exhibition, in Abuja on Wednesday. They added that investment confidence and appetite were gradually coming back to the industry following the settlement of joint venture (JV) cash call arrears owed them by the NNPC.

The NNPC in December 2016 got a discount of $1.7 billion from $6.8 billion cash call debt to its JV partners, and was asked to pay $5.1 billion instead. The IOCs include Mobil Producing Nigeria Unlimited (MPN); Shell Petroleum Development Company (SPDC); Total Upstream Companies in Nigeria (TEPN); and Chevron Nigeria Limited (CNL) among others.

The chief executives of the IOCs who spoke on investment opportunities in the sector said they were glad the issue which obstructed negotiations for investments in Nigeria at their boards, was now off. “For as long as I have been in this industry, we have been discussing cash call as a never-ending issue, I think that we were able to sit down together as an industry and government to try and tackle that issue and we should not underrate the importance of that.

“What that has done is that it opens up the appetite to have a conversation about investment. “Nigeria is competing for capital with every other country in the world and sometimes we forget that and think that we are world unto ourselves, but the reality is that each of these companies operate in 20, 30, 80 countries and people are competing for capital,” said Osagie Okunbo, Country Chair of Shell companies in Nigeria and Managing Director of SPDC. Osunbor further stated:

“If the first thing that happens in your discussion is that debts that has been properly incurred are not being paid by your majority partner, it moves that argument before you may even start a conversation. “What is of significant today is that argument is off the table. For the first time, we finished a year without NNPC owing cash calls. ” I have a current CFO in Shell who was here five years ago and just returned, he says he cannot believe what is happening.

“Essentially what he spent his time here was chasing cash calls from NNPC, today, he doesn’t have to do that. That just essentially opens up the appetite.” He stated that the industry must however insist of making the arrangement work, adding that there is the need to put our hands on the plough to ensure it does not derail. “We cannot take it for granted that we have a funding structure that works and assume it will continue to work. “I opened the paper sometimes and read that the governors have instructed NNPC to suspend payment of JV cash calls. We can’t do that, it is important that the very basis that underpins the progress we have seen in the industry is sustained.” he said Osunbor, explained that issues around security, contracting cycle, sanctity of contracts and thresholds of JVs and Production Sharing Contracts (PSCs) still needed to be sorted, as well as the reform laws in the industry.

Also, the Managing Director of CNL, Jeff Ewing, stated that government did well in clearing the JV arrears. “The execution of those agreements have gone very well, and it has really boosted our confidence in the JV. “Some of the things that have happened have increased our activities in the JV because we have come confidence.” Ewing, however explained that the rise in oil prices had brought a. Level of confidence as regards uncertainties in the industry. He added that Nigeria needed to be competitive globally in the fiscal policies and ease of doing business adding that it was part of the IOCs discussion with government.

“ The government is making some good steps on the PIB, changes to the JV oil terms – we are looking forward to that. We have also talked about our concerns in the public hearing on JV gas in deep-water terms, they need to be competitive to draw more money into Nigeria. “We see a lot of potentials in Nigeria, there is a big oil and gas reserves here; we just need to have the right framework in place to have a globally competitive fiscal prices in place to help us develop,” he added.

Similarly, the Managing Director of MPN, Paul McGrath, explained that: “To unlock the potentials in the country, we need first of, certainty. The recent work that is being done in the petroleum industry bill and the reform in the national assembly, is an excellent piece of work, but it needs to have an end result.” “We need to have an industry reform bill or set of bills that will attract international investment not push it away. I’ve been very encouraged with the dialogues we’ve had with the national assembly and the technical teams till date. “They have listened, they are listening and tried to engage the industry and I think that is very interesting but at the end of the day, we need to stop talking about industry reform, have industry reform and then move on and unlock the potentials,” he noted.(NAN) Related

Read more at: https://www.vanguardngr.com/2018/07/jv-cash-calls-iocs-commends-nnpc/

Mynd44, lalasticlala, OAM4J

Lemme investigate this potential lie

FarahAideed:
Lemme investigate this potential lie

Where did you run to? Come and declare your findings

Kai Jonathan, your destiny is reallyto bankrupt this country, only God saved us from your style of governing. Sai PMB

Wailers would naturally deny this great news and might not even comment knowing that they can't twist this.

Yyeske:
Wailers would naturally deny this great news and might not even comment knowing that they can't twist this.

They are welcome to try

You saw that farahaideed the chief liar and wailer ran away when he saw he couldn't twist it

“If the first thing that happens in your discussion is that debts that has been properly incurred are not being paid by your majority partner, it moves that argument before you may even start a conversation. “What is of significant today is that argument is off the table. For the first time, we finished a year without NNPC owing cash calls. ” I have a current CFO in Shell who was here five years ago and just returned, he says he cannot believe what is happening.

Truly i can attest to the above. It's even showing in the amount of oil industry projects that are springing up all over the Niger Delta. The IOC's are now awash with cash and they're deploying it into capital projects left, right and centre translating into jobs and more jobs for those interested

FarahAideed:
Lemme investigate this potential lie

Farah, i doubt you'll find anything

Clearing the backlogs was one of the first things Kachikwu embarked on when he came and for good reason. His MOBIL was also a victim of it. He really tried and Buhari gave him the necessary support and free hand to work on it. Now it's yielding fruits as attested to by the leaders of these companies

vedaxcool:
Kai Jonathan, your destiny is reallyto bankrupt this country, only God saved us from your style of governing. Sai PMB

shut up yeye zombie...

What is the current debt profile of this administration?

Don't just annoy me

[s]

PresidentAtiku:
shut up yeye zombie...

What is the current debt profile of this administration?

Don't just annoy me

[/s]

This one no get am for thinking, him leave mumu to support thief and still dey ask me mumu questions. Jonathan piled so much debt despite earning the highest inflow from oil but.

If you are doing something and the Robotic pigs of the poverty development party are not happy, just know that you are doing the right thing.

vedaxcool:
[s][/s]

This one no get am for thinking, him leave mumu to support thief and still dey ask me mumu questions. Jonathan piled so much debt despite earning the highest inflow from oil but.

Jonathan handed over power close to 4 years ago. What is the debt profile of this useless government? Answer and stop displaying your mumism the more

dlondonbadboy:


My brother, if I tell you how much this administration has borrowed and is borrowing, you will shout.
Nigeria is in a mess because of Buhari. Even when SARAKI becomes President in 2019, it would take another 20years to get this country back on track.

you dey mind all these co illiterate supporters?

dlondonbadboy:


My brother, if I tell you how much this administration has borrowed and is borrowing, you will shout.
Nigeria is in a mess because of Buhari. Even when SARAKI becomes President in 2019, it would take another 20years to get this country back on track.

President Olubukola Saraki and First Lady Oluwatoyin Saraki nee Ojora

hmmmmmmm......... Not bad at all

PresidentAtiku:
you dey mind all these co illiterate supporters?

I don't know how much they would pay a human being to sell his conscience..to betray his country. I look at Nigeria today, and boy, this can't be the Nigeria of our dream. WTF! Everybody is looking for how to exit the country!
A man came with his cluelessness and dragged us 20years backwards! And somebody has the audacity to campaign for him? Based on what?
You can't buy anything in the market anymore.
Killings everywhere.
No light.
No road.
Things are expensive.
Millions are losing jobs.
Even the corruption fight.....we no see the head or the tail. Apart from illegal detention of opposition with disregard for court orders. We no see the corruption wey SaiBaba dey fight..

It's a shame, that human beings cos of money can sell their souls and betray their country. It's such a shame..

Shukuakukobambi:


President Olubukola Saraki and First Lady Oluwatoyin Saraki nee Ojora

hmmmmmmm......... Not bad at all

Is it not better than this show of shame Nigerians are currently witnessing?

Reno, FFK, oya food don land.

dlondonbadboy:


Is it not better than this show of shame Nigerians are currently witnessing?

Which particularly are you pointing to? Ever since the founding of the republic, we've been treated to one show of shame or the other by every single administration so which is irking you right now?

Butterflyle0:


Where did you run to? Come and declare your findings

Over the hateful bigot's dead body.

If a possitive truth about Buhari or APC government lands on his face even like a meteorite, dude could swear he felt nothing, therefore there's no testimony to give. Ditto all PDP supporters worldwide!

This has little or no bearing on the lives of average Nigerians. Besides, they should state the level of indebtedness of Nigeria since the Buhari administration.

Shukuakukobambi:


Which particularly are you pointing to? Ever since the founding of the republic, we've been treated to one show of shame or the other by every single administration so which is irking you right now?

The nonsense we are currently facing is pissing me off

dlondonbadboy:


The nonsense we are currently facing is pissing me off

I understand. It's just that every administration since 1960 has perpetuated one nonsense or the other. It isn't peculiar to this admin. For instance, the cash call debt that Kachikwu and Buhari have just solved was one nonsense and sore in the oil industry that rendered it stagnant for the past 7 years.

When buhari finishes, another admin will come clear his nonsense and i believe, in the process, create their own nonsense. It's the Nigerian way i guess

Shukuakukobambi:


Which particularly are you pointing to? Ever since the founding of the republic, we've been treated to one show of shame or the other by every single administration so which is irking you right now?

Look at the trash the boy is writing.

You see why i told you guys the other day their silly moves in trying to drive a wedge between APC supporters by praising Osinbajo (whoever thinks such an idea could work) would come back to hunt them?

Now, they are the same people asking what the achievements of this admin is. That the admin has achieved ABSOLUTELY NOTHING!

Were these not the same people that wrote just days ago, TEN GREAT ACHIEVEMENTS OF OSINBAJO IN TEN DAYS?

Suddenly, they've forgotten! Oh, I forgot, Osinbajo is the president of Mozambique.

Cc: . Shey I told you their nonsense will come back to hunt them.

Corrinthians:
Look at the trash the boy is writing.

You see why i told you guys the other day their silly moves in trying to drive a wedge between APC supporters by praising Osinbajo (whoever thinks such an idea could work) would come back to hunt them?

Now, they are the same people asking what the achievements of this admin is. That the admin has achieved ABSOLUTELY NOTHING!

Were these not the same people that wrote just days ago, TEN GREAT ACHIEVEMENTS OF OSINBAJO IN TEN DAYS?

Suddenly, they've forgotten! Oh, I forgot, Osinbajo is the president of Mozambique.

Cc: . Shey I told you their nonsense will come back to hunt them.

It's all politics. PDP supporters wish to have their party back in power no matter who gets the ticket

Those in the oil industry have felt the impact of this admin and that's the testimony from even Vanguard of all papers. Buhari didn't impress me in some areas but he's truly caused a change in some other areas. It's not all gloomy news

Of course the Osinbajo ten days magic was a tale even Reno omokri and FFK can't sustain. Watch how they'll start calling him all sorts of names now

[s]

PresidentAtiku:
Jonathan handed over power close to 4 years ago. What is the debt profile of this useless government? Answer and stop displaying your mumism the more

[/s]

Supporter of Mumu and Thieves, how much debt did Jonathan leave behind. Well I am asking you question you possibly cannot even answer, here is the debt profile of the country during time of plenty and compared to now. It will do you and the army of supporters of looters a world of good to develop some basic decency in your ignoble path.

vedaxcool:
[s][/s]

Supporter of Mumu and Thieves, how much debt did Jonathan leave behind. Well I am asking you question you possibly cannot even answer, here is the debt profile of the country during time of plenty and compared to now. It will do you and the army of supporters of looters a world of good to develop some basic decency in your ignoble path.

you have mumuishly done well....What is the debt profile? I am sure you can see from your pix? You don't want me to ask you about the cost of buying fuel, standard and quality of life etc

[s]

PresidentAtiku:
you have mumuishly done well....What is the debt profile? I am sure you can see from your pix? You don't want me to ask you about the cost of buying fuel, standard and quality of life etc

[/s]

As expected the slave of a mumu and a thief cannot understand anything, what debt did your mumu leave behind and how much was he earning. Anyway it takes a poorly educated ignoramus to support a mumu.

'Debt recycling'

Borrowing to pay off another debt.

Buhari scamming the gullible since 2003.

Omeokachie:
'Debt recycling'

Borrowing to pay off another debt.

Buhari scamming the gullible since 2003.

Ode so NNPC borrowed ?

I don't think you read the article.

Your GEJ was a mess and he almost ruined this country. Thank God we kicked him out as we will keep ensuring PDP gets kicked out for the next 50 years

It is VERY obvious that some people on this forum should be ignored.
Are you blind or what?, the combination of the military heads of states did not even earned up to $120 billion and they are the supposed enemy of democracy.
While PDP, the lover and the defender of democracy earned approximately $782 billions of dollars, but still left over 60 billion dollars debt and a useless $28 billion external reserve, for a country of over 170 million people, without leaving any meaningful development behind.
This is for those who never see anything wrong in 16 years of WASTAGE, I'm praying for YOU, that every disaster that PDP has WRECKED on this country MUST BEGIN TO MANIFEST, MANIFOLD in your life and your likes, in the mighty name of Jesus. Amen.