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Oil Bloc: Mass Sack Looms As More IOCs Mull Exit / Proof Of N450M Given To Keyamo By NNPC To Be Published By Us - Leadersng / Ijaw Youths Shut Content Board For Not Relocating Iocs Offices (2) (3) (4)
|NNPC To Review JV Payment Structure With Iocs by actiondrilling: 3:40am On Jul 05|
The Nigerian National Petroleum Corporation, (NNPC), said on Thursday it was planning to review its payment structure for energy joint ventures operating costs to ensure smooth financing for projects that have often struggled to secure timely contributions from the Federal Government over the years.
The new “incorporated joint venture” model would allow the ventures to operate as independent entities, so they could raise capital through equity or debt and then pay dividends to shareholders, NNPC said in its statement.
Under the current structure, International Oil Companies (IOCs) cover costs and issue cash calls to NNPC for its share.
But the Corporation, which is responsible for oil production that provides the bulk of government revenues, has rarely paid on time and had had to face bigger challenges after the 2014 oil price slump, which led to a sharp rise in its arrears.
Those arrears are being paid off with surplus oil output. But outgoing NNPC Group Managing Director, Dr Maikanti Baru said this payment arrangement was only a temporary measure, although it did not give details about the new structure or when it would be introduced.
He however said the new model could take the burden of regular payments off from NNPC, which has already announced plans to slash its stakes in the joint ventures to less than 40 per cent this year from between 55 per cent and 60 per cent in a bid to raise revenues for government.
The Corporation’s joint venture partners include Royal Dutch Shell, Chevron and ExxonMobil.
Meanwhile Italian prosecutors are widening an investigation into suspected obstruction of justice by officials of oil group Eni, sources said, threatening to open a new legal front for the company as it defends itself in a major corruption trial.
The inquiry is preliminary and has been overshadowed by the ongoing trial, which centres on the 2011 purchase of a Nigerian oilfield by Eni and oil major Shell, but it is gathering momentum, said three sources familiar with the probe.
Milan prosecutors have been questioning a growing number of people, and Eni itself is under investigation, over suspicions that a few company officials tried to discredit two key prosecution witnesses in the corruption case, the sources said.
Eni has said in public statements that it knew of no attempt to obstruct justice and would consider itself a victim if any crime of obstruction were shown to have been committed.
“Eni declares itself an offended party from any point of view linked to alleged activities aimed at diverting any investigations carried on by any Italian prosecuting authority,” the company said further in a statement to Reuters.
Prosecutors have not laid any charges against Eni officials or the group itself and their investigation may not lead to charges.
The 18-month-old probe is adding to the legal workload of top management, which has begun an internal investigation into possible obstruction, a source with knowledge of the matter said.
In the corruption case, Eni and Shell were accused of buying Nigeria’s OPL 245 offshore oilfield in the knowledge that the vast majority of the $1.3 billion purchase price would be siphoned off to agents and middlemen in corrupt payments.
Eni and Shell have denied any wrongdoing in that case, one of the industry’s biggest corruption scandals. They are being tried in Milan along with some of their managers, including Eni Chief Executive Claudio Descalzi, who have also denied wrongdoing.
In the obstruction investigation, prosecutors are looking into whether in 2015 and 2016 Eni’s then head of legal affairs, Massimo Mantovani, and other yet-to-be-identified Eni officials sought to discredit two independent board members who later became witnesses in the Nigeria case, the three sources said.
One of the two directors, Luigi Zingales, who has since left the board, told Reuters that at the time of the possible obstruction he and fellow independent director Karina Litvack were critical of the group’s handling of the Nigeria case, including its oversight of a broker firm used in the deal.
Litvack, still an Eni director, declined to comment.
Eni lawyers denied in trial hearings that the company’s anti-corruption controls were inadequate and in a statement to Reuters, the company said its governance and controls were effective, now and at the time of the oilfield purchase.
“Overall, Eni does not consider the statements by its former director Prof. Zingales a reasonable proxy to assess the governance and contractual functioning of ENI on OPL 245.”
Prosecutors are reviewing whether Mantovani, who now works for a European subsidiary of Eni, directed a conspiracy to file false criminal complaints against the two directors, alleging they had criminally defamed CEO Descalzi, the three sources added.
Mantovani, whose Rome and Milan offices were searched by prosecutors in February 2018, has denied any wrongdoing. His lawyer declined a request for comment.
The Nigeria case was still in an investigative stage when the complaints were made against Zingales and Litvack, alleging they had defamed Descalzi by implicating him in corruption over the Nigeria purchase, the sources added.
The anonymous complaints were investigated and dismissed by a Milan judge in September 2017.
Court records in the Nigeria graft trial show that the two directors never testified that Descalzi had known or was involved in corruption, only stating that Eni had lacked proper anti-corruption controls.
|Re: NNPC To Review JV Payment Structure With Iocs by saheedbadmus(m): 4:00am On Jul 05|
|Re: NNPC To Review JV Payment Structure With Iocs by sparog(m): 4:57am On Jul 05|
|Re: NNPC To Review JV Payment Structure With Iocs by iornenge81(m): 4:58am On Jul 05|
|Re: NNPC To Review JV Payment Structure With Iocs by aolawale025: 5:17am On Jul 05|
Being a debtor in JVs, leaves little bargaining powers. NNPC needs to restructure fully not piece meal
|Re: NNPC To Review JV Payment Structure With Iocs by otabuko(m): 5:23am On Jul 05|
Big big story.
|Re: NNPC To Review JV Payment Structure With Iocs by ithink7: 5:55am On Jul 05|
This fixation on oil and oil companies will not help Nigeria's economy. The world have moved on to knowledge economy but the only thing illiterate Buhari knows is oil.
Btw I commented before reading the story then I saw they want to do this to raise money for the government. So I'm right.
|Re: NNPC To Review JV Payment Structure With Iocs by lonelydora: 5:58am On Jul 05|
NNPC will start doing very well the day FG will unbundle them.
But no President will try that because NNPC is the conduit pipe for syphoning money.
|Re: NNPC To Review JV Payment Structure With Iocs by SoNature(m): 6:40am On Jul 05|
I laughed when people who know next to nothing about Nigeria's oil and gas industry kicked against Atiku's decision to sell off the NNPC.
The Corporation has become useless over the years, gulping the same money it ought to generate for the government.
It rarely honours JV agreement, and I keep wondering how the IOCs have survived the herculean task of upstream operation financing.
If the NNPC had been a serious Corporation, it would have gone beyond Nigeria to manage the oil industry of Ghana and other African neighbors that just discovered crude oil in their backyards.
It's just annoying that nothing works in Nigeria, and the NNPC, a major fund generator for the Nigeria's government, is no exception.
|Re: NNPC To Review JV Payment Structure With Iocs by Aidejay(m): 6:54am On Jul 05|
4 Towers of Corruption
|Re: NNPC To Review JV Payment Structure With Iocs by Marcus234: 7:06am On Jul 05|
Pay us our scholarship money of 3 years plus. Initially it was Mr Aniefiok Friday was incharge now is Mr Christopher Wilson. Pay us our outstanding scholarship money. Total JV please pay us (2013/2014) undergraduates.
5 Likes 4 Shares
|Re: NNPC To Review JV Payment Structure With Iocs by Oluwa4u(m): 7:06am On Jul 05|
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|Re: NNPC To Review JV Payment Structure With Iocs by Joannyq9: 7:16am On Jul 05|
It's being more than 3 years now, TOTAL JV has refused to pay us our outstanding scholarship, yet they keep on awarding new ones, we got The National Merit Award in 2014 I. E 2013/2014 academic year, some have even graduated, sone who are medical students like us are still in school, yet TOTAL JVA has refused to pay us our scholarship money for the past 3 years now.
4 Likes 3 Shares
|Re: NNPC To Review JV Payment Structure With Iocs by Osahon6g4u: 7:29am On Jul 05|
I am a UNILAG Student, I was awarded TOTAL JV SCHOLARSHIP in 2013/2014 session, for over 3years now I and other awardee are yet to be paid our outstanding scholarship fee.
We have called the person we were made to understand is incharge, we call severally no head way please TOTAL JV pay us our outstanding scholarship.
3 Likes 3 Shares
|Re: NNPC To Review JV Payment Structure With Iocs by Teejay1511(m): 7:32am On Jul 05|
|Re: NNPC To Review JV Payment Structure With Iocs by Okmartins(m): 7:38am On Jul 05|
TOTAL JV Pay 2013/2014 Awardee our scholarship money for 3 years now. Pay us our undergraduate scholarship money. Our colleagues in OML have been paid, please pay us our outstanding scholarship money. It's more than 3 years since we got paid.
2 Likes 2 Shares
|Re: NNPC To Review JV Payment Structure With Iocs by Berrybaby40: 7:53am On Jul 05|
TOTAL JVA has forgotten us, they award new undergraduate scholarship yearly, but has refused to pay us; 2013/2014 JV AWARDEE. Mr Friday Aniefiok has forgotten us. Mr Christopher Wilson has forgotten us. TOTAL WHY
1 Like 1 Share
|Re: NNPC To Review JV Payment Structure With Iocs by Brazil48: 8:29am On Jul 05|
I am a TOTAL JV awardee of 2013/2014 and I am still been owed. TOTAL please pay your awardee. Our colleagues in OML have all been paid... Some of us are graduating soon.
2 Likes 1 Share
|Re: NNPC To Review JV Payment Structure With Iocs by Inception(m): 8:33am On Jul 05|
|Re: NNPC To Review JV Payment Structure With Iocs by banio: 11:38am On Jul 05|
IOCs don't give a bleep. All they do is " divide and rule ".
They have even stopped employing - all they do is outsourcing, so I think scholarships are not in their lexicon either.
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