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 immediate past 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.
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.
He acknowledged the support of President Muhammadu Buhari and some relevant agencies in achieving the speedy execution of the repayment plan.
The former GMD added the next level “is for NNPC and MPN to within two years, migrate the Joint Venture (JV) into an Integrated Joint Venture (IJV) with its Board operating independently and paying dividends to its shareholders”.
On his part, the Managing Director of the Mobil Producing Nigeria, Mr Paul McGrath said the milestone was a victory for MPN, NNPC and Federal Government of Nigeria.
In his remarks, Mr John MacGrath commended Baru for driving a transparent system that brought about the early close-out of the repayment agreement.
According to him, MPN has no more fear or reservation in dealing with NNPC in future projects.
“I will like to commend the leadership team of the NNPC, especially the Group Managing Director, Dr. Maikanti Baru, for his strong and relentless leadership that has resulted in the resolution of what was becoming an intractable matter.
“ This is in addition to other noteworthy contributions he has made to the advancement of the industry since assuming office,” he said.
The high point of the event was the official signing of Deed of Settlement of Pre-Production Costs for Usan in OPL 222/OML 130 at a negotiated cost of about 1.076 billion dollars as against initial 1.45 billion dollars cost.
NLNG Spends $30bn On Gas Plants, Infrastructure In Bonny
The Nigerian Liquefied Natural Gas Company (NLNG) has invested over 30 billion US dollars (N10.8 trillion) to build gas facilities and other infrastructures in Bonny Island, Rivers, an official said.
Managing Director of NLNG Mr Tony Attah disclosed this yesterday at the end of week-long activities marking the company’s 20/30 Anniversary Celebration.
The Tide reports that NLNG used the occasion to celebrate its 20 years of operation in Bonny and 30 years of incorporation as a company.
The NLNG, Attah said, invested parts of the huge sum to build gas plants, known as Train 1, 2, 3,4, 5 and 6 as well as the ongoing construction of another Train 7 project.
“NLNG’s combined scale of investment in Bonny Kingdom is more than 30 billion dollars in assets, making it the most developed community in the Niger Delta.
“Our several accomplishments in the kingdom, ranged from our provision of modern road network, potable water and Finima Nature Park to residents of Bonny.
“Also, we invested in electricity that perhaps has made Bonny the only community in Nigeria with 99 per cent electricity and a preferred investors and tourist destination,” he said.
Attah further said the company has completed construction of Airstrip that could receive more than 60-passenger capacity aircrafts, making it one of the largest airstrip in Africa.
He said the company has provided N60.3 billion counterpart funding for the construction of N120.6 billion 34 kilometre Bonny-Bodo road project connecting Bonny Island to rest of the country.
“The ongoing road project, which we are co-sponsoring with the Federal Government, is expected to be completed within 48 months, thus triggering development and tourism in the area.
“We have also launched the malaria elimination initiative as well as the Bonny Community Health Insurance Programme in conjunction with Rivers State Government to provide affordable healthcare for the people.
“The company achieved these milestones due to the cordial and peaceful relationship existing between Bonny and Nigeria LNG in the last 20 years,” he added.
The managing Director later laid foundation for the reconstruction of Bonny Consulate Building, a historic building once used by slave merchants to transport slaves abroad.
Attah said the building would be equipped with a museum, library, movie hall, radio station, cafe, seminar/exhibition hall, souvenir shop and offices.
NNPC Tasks NLNG Shareholders On Production Capacity
The Nigerian National Petroleum Corporation (NNPC) has challenged shareholders of the Nigeria Liquefied Natural Gas (NLNG) to work towards expanding the production capacity of the company beyond Train 7.
The Group Managing Director of NNPC, Malam Mele Kyari, gave the charge in a statement signed by the Acting Spokesman for the corporation, Mr Samson Makoji in Abuja, last Friday
Kyari spoke during the signing ceremony of a 2.5 billion dollar pre-payment agreement between NNPC and NLNG for upstream gas development projects to supply gas to NLNG Trains 1 – 6.
He said the agreement would help to resolve the issues around gas supply to Trains 1 – 6, adding that there was need to fast-track action on the process of bringing more trains on stream.
He noted that though NLNG had been a huge success as a company, it must go beyond its current achievements and initiate other viable projects capable of generating better return on investment.
“Actually, our thinking should be on what else we can do or what other projects we can work on as quickly as possible to take advantage of the enormous potential in the country.
“ There is also the need for us to take advantage of what is happening in the global market and do things very differently.
“There are opportunities there and our company must move into those locations and we must move fast,” he added.
The GMD said the pre-payment gas supply agreement was a milestone which aligned with the Federal Government’s aspirations of monetising the nation’s enormous gas resources.
He added it would also help in protecting the Federation’s investment in the NLNG, ensuring full capacity utilization (22mtpa LNG and 5mtpa NGLs) of Trains 1-6 plants, generating employment, and providing new vistas of growth opportunities in the nation’s LNG sector.
Earlier in his address, the Managing Director of NLNG, Mr Tony Attah, noted that the signing of the gas supply pre-payment agreement was a significant step towards ensuring the company’s business sustainability and competitiveness.
He called for support to ensure that the Final Investment Decision on the Train 7 Project would be taken in 2019 without failure.
He added that the project was no longer an ambitious one in the light of developments in the global LNG market.
The signing of the gas supply pre-payment agreement was witnessed by the Country Chairman of Shell Companies in Nigeria, Mr Osagie Okunbor, and representatives of Total, Eni/NAOC, among others.
FG Launches Operation White To Check Fuel Diversion
The Minister of State for Petroleum Resources, Chief Timipre Sylva, has launched the “Operation White” project geared toward ensuring transparency and accountability of petroleum product supply and distribution in Nigeria.
Sylva, represented by the Executive Secretary of Petroleum Equalisation Fund (PEF), Mr Ahmed Boboi, said in Lagos last Friday that the essence was to entrench energy security.
He said it would also deepen the drive for transparency in the downstream operations.
Sylva said the strategic initiative was aimed at deploying adequate measures in ensuring that all molecules of regulated petroleum products imported by the Nigerian National Petroleum Corporation (NNPC) were well accounted for and utilised.
“NNPC will continue to record excellent performance in product supply and distribution to the nation.
“It is doing what it is supposed to do as supplier of last resort, but the reality is the nation bears a great cost in terms of absorbing the shocks of differences in cost.
“It is critical that all hands be put on deck to ensure that every molecule of product imported into this country is utilised within the borders of this nation for the benefit of Nigerian populace.
“This is a national imperative and a core thrust of Mr President’s mandate for leadership of the oil and gas industry.
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