The outstanding $3.8 billion cash-call debts owed to international oil companies (IOCs) by the Nigerian National Petroleum Company Limited (NNPCL) have been cleared, according to NNPCL’s Executive Vice President, Upstream, Adokiye Tombomieye. Tombomieye made this disclosure during a panel session on upstream opportunities at the Nigerian Oil and Gas Opportunity Fair (NOGOF) 2023, organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State.
He also bemoaned a lack of adequate joint venture cash call funds, saying it was stifling the growth of the oil and gas industry. While representing the Chief Upstream Investment Officer, Mr Bala Wunti, Tombomieye stated that Nigeria’s crude oil production had significantly increased following measures to tackle crude oil theft.
However, Tombomieye warned that the NNPCL would no longer deal with portfolio companies and urged investors to avoid acting as middlemen. He disclosed that the company had leveraged its financial autonomy derived from the Petroleum Industry Act (PIA) to work out and execute a payment plan for the cash call debt while balancing its energy security obligations to the nation.
“This, by no small means, re-energised the JVs to recalibrate their focus towards sustaining production and increasing their spending to procure the necessary services required,” the NNPCL chief said.
