FG, IOCs Agree To Offset $5.1bn Debt


The Federal Government has reached an agreement with the International Oil Companies (10Cs) to off set its $5.1 billion debt with crude oil lifting.

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, who disclosed this Thursday in Abuja noted that the main beneficiaries included shell, Exxon Mobil and Chevron. According to the Minister, the amount would be settled through crude-oil sales over five years and that it would be interest free.

He said: “What we have been able to put together has enabled us to shave about $1.7 billion in savings for the Federal Government from the $6.8billion that was owed.

“The barrels to pay those will come from incremental barrels generated by the oil companies, not from the current 2.2 million barrels a day production.

“In other words, if we do not meet those thresholds we will not pay the $5.1 billion.

Bloomberg reported that ExxonMobil, Shell, Total SA,Eni SPA, Chevron Corp, are owned money for cost incurred from 2010 to 2015. Nigeria still owes the firms $2.6 billion from operations this year.