NNPC Pays Oil Companies $3bn Accrued Operational Expenses

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The Nigerian National Peteoleum Corporation has repaid International Oil Companies $3bn as part of the operational expenses owed over the past ten years.

The state owned corporation had agreed a $5.1bn settlement with the oil giants in 2016.

NNPC said the areas will be settled through crude oil sales deal for five years, up from 2016.

The Corporation has fully settled Exxon Mobile with $2.3bn, while it paid Royal Dutch Shell $455m with outstanding balance of $917m, Bloomberg quoted NNPC.

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Chevron has received $1.04bn with an outstanding $55m and Eni has received $390m, while $385m is stilll outstanding.

Currently NNPC’s outstanding total for all companies is $1.7bn, as of August 2020.

The state owned corporation runs a joint ventures with oil companies including Exxon Mobil, Shell, Chevron, Total SE and Eni SpA.

The International Oil Companies contributed about 80 per cent of the country’s crude output.

Between 2010 to 2015, the NNPC was unable to contribute its share of expenses in the joint venture due to fall in oil revenues and poor demand.

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Consequently NNPC owed the IOC’s the bulk of arrears.

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