Thursday, March 4, 2021

JV Oil Assets Gulped N173.38bn In Two Months – NNPC

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The Nigerian National Petroleum Corporation in it’s latest monthly report has spent a total of N173.38bn on oil and gas assets being developed through joint ventures with private firms in October and November 2020

The NNPC, which represents the Federal Government in the JVs, has an obligation to make cash call payment for the development of the assets.

The nation’s oil and gas production structure is majorly split between the JV (onshore and in shallow waters) and the Production Sharing Contracts in deep water offshore.

Under the JV arrangement, both the NNPC and the private firms contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio. The NNPC’s cash call payment rose to $271.88m (N103.04bn) in November from $185.58m (N70.34bn) in October, according to the report.