Post Views: 948 • Admits Owing $6bn Pre-2016 Debt The Nigerian National Petroleum Corporation (NNPC) on Monday assured that the four major investments...
• Admits Owing $6bn Pre-2016 Debt
The Nigerian National Petroleum Corporation (NNPC) on Monday assured that the four major investments it recently embarked upon with key upstream joint venture partners is capable of boosting the national treasury by over $30bn on incremental basis over the next 10 years.
Inaugurating the reconstituted NNPC Anti-Corruption Committee in Abuja on Monday, Group Managing Director of the Corporation, Dr. Maikanti Baru, said the investments which attracted a haul of close to $3.8bn in foreign direct investments would serve as vehicle to fast-track the prevailing post Cash-Call exit era.
The GMD listed the critical Joint Venture alternative financing upstream investments to include: The $1.2bn multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited, codenamed project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800m alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.
A statement by Ndu Ughamadu, the corporation’s Group General Manager, Group Public Affairs Division, also listed agreements executed in London last week for the $1bn NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780m Project Falcon on Sonam, hitherto financed through JV Cash Call.
Dr. Baru commended the NNPC finance and technical teams for being able to attract the much needed foreign investment at a period when it has become increasingly difficult to attract foreign credit facilities.
“These four projects alone are going to raise incremental revenues to Nigeria of over $30bn over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting JV Cash Calls. We have to pay our arrears of about $6bn that were incurred pre-2016 and we are also paying up a tranche of about $1bn 2016 arrears. We started in April 2017 with the payment of $400m and we will pay the balance before the anniversary of the first payment,’’ he said.
The GMD explained that the arrangement would allow the corporation to subsequently operate from the production revenue less the first line charge to government which is the royalties and petroleum profit tax.
He said that whatever profit that accrues afterwards would be remitted to the government after deduction of production cost.
Drawing a correlation between the quest for revenue and the anti-corruption campaign, the GMD said members of staff must never allow corrupt practices to distract from the great task ahead.
The GMD traced NNPC’s involvement in the anti-corruption campaign to the year 2000 when the Federal Government directed all its Ministries, Departments and Agencies (MDAs) to establish in-house Anti-Corruption Committees.
“NNPC was the first to put one in place within a month, precisely in October 2000”, he noted
Dr. Baru was a chairman of the committee.
He noted that since then, the NNPC Anti-Corruption Committee had consistently carried out its mission of eradicating corruption in NNPC through organizing sensitization campaigns, workshops, seminars and Federal Government publications on issues concerning corruption and economic crimes.
While thanking the former committee members that served at various times for a job well done, the GMD urged the new members to surpass the achievements of the past committees in line with the present administration’s anti-graft agenda.
He emphasized that with the prevailing global economic reality; the only survival strategy at a time like this was to change from old ways of doing business and embrace the best practice of transparency, accountability and honesty with integrity.
The new NNPC Anti-Corruption Committee is headed by Mr. Mike Stanley Balami, a Group General Manager in the Finance and Account Directorate and a veteran anti-corruption crusader.
Balami pledged the readiness of members of the committee to work in harmony towards achieving a corruption-free NNPC.
He urged all heads of Strategic Business Units and Corporate Services Units to reconstitute and inaugurate their Anti-Corruption units to work closely with the Corporate Anti-Corruption Committee to ensure a corruption-free NNPC.