We’ll settle $6bn JVs debt using tax – NNPC

Social sharing

The Nigerian National Petroleum Corporation (NNPC) says it is planning to pay its Joint Venture Cash (JVC) call arrears owed multinational oil companies.

The NNPC said it would ensure that outstanding and future payments were liquidated from oil and gas royalties and taxes under a first line charge model.

The Group Managing Director of the NNPC, Dr Maikanti Kacalla Baru, made plans of the corporation known during a visit to the National Petroleum Investment Management Services (NAPIMS), a statement issued by the NNPC spokesman, Garba Deen Muhammad, said.

The NAPIMS is the corporate service unit of the corporation in charge of federal government portfolios in the upstream sector.

Cash calls are each partner’s (NNPC and Shell, Mobil or Total e.t.c) share of the operating and capital expenses contributed to fund oil activities.

The NNPC, in its July operations report, said it had transferred the sum of $3.16bn oil proceeds to fund JVC call in the last one year.

JV funding had been one of NNPCs major challenges with the arrears now totalling over $6bn.

But the Minister of State for Petroleum Resources, Ibe Kachikwu, recently, said that a process of paying the arrears was jointly created.

Baru agreed that the current JV payment structure needed review, adding that the new model proposed by the NNPC would enable the corporation to plough back the profit and grow the oil and gas business in the upstream for the benefit of stakeholders.

He also promised to reposition the National Engineering and Technical Company (NETCO) into an African hub of excellent engineering, procurement and construction company of choice.

READ ALSO  "Take Me To Court If You're Not Corrupt!" - Bode George Dares Tinubu

Baru said during a maiden Town Hall meeting with management and staff of NETCO at its headquarters in Lagos that NETCO had delivered profit to the NNPC.

Source: Daily Trust 

Leave your comment on this post
About Timothy Stephen 1104 Articles
9News Nigeria Global Breaking News Platform News from Nigeria News from Africa Nigerian News African News

Be the first to comment

Leave your comment