The Nigerian National Petroleum Corporation (NNPC) says it has fully settled the total amount owed to Mobil Producing Nigeria (MPN) with a payment of 833.57 million dollars cash call arreas.
The corporation disclosed this in a statement signed by its spokesman Mr NDU Ughamadu, in Abuja on Wednesday.
He said that the corporation was able to achieve this barely two years after it signed a Cash-call Repayment Agreement with its Joint Venture partners to defray cash-call arrears within a period of five years.
According to him, the Group Managing Director of NNPC, Dr Maikanti Baru disclosed this at a commemorative close-out ceremony to mark the conclusion of NNPC/MPN Cash Call Repayment Agreement.
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He qouted Baru as saying that the feat was a product of determination and hard work.
Baru noted that NNPC management came up with the novel cash-call exit strategy to boost investors’ confidence and grow the nation’s oil and gas industry.
He added that the payment did not in anyway undercut remittances to the Federation Account as it was achieved through revenue from incremental production.
“It is gratifying to note that within two years of this agreement, the NNPC/MPN JV significantly executed in incremental activities that generated adequate proceeds to liquidate the 833.57 million dollars cash-call arrears, whilst ensuring that revenue flow from the JV to the Federation remained stable,” he said
He further explained that with the close-out of the repayment agreement, the entire incremental production which is over 45,000 barrels of oil per day (bopd) had been migrated to Federation’s equity and would invariably lead to an increase in revenue to the Government.