The Federal Government owes oil companies at least a total of $8.06bn in unpaid cash calls, as the Nigerian National Petroleum Corporation failed to pay $3.06bn in the first seven months of the year.
The nation’s oil and gas production structure is majorly split between Joint Ventures onshore and in shallow water with foreign and local companies and production sharing contracts in deepwater offshore.
The NNPC owns between 55 per cent (for JVs with Shell) and 60 per cent (for all others) and the JVs are jointly funded by the private oil companies and the Federal Government through the corporation.
The latest monthly report of the NNPC showed that the corporation paid a total sum of $1.932bn from January to July this year, as against $4.987bn expected to be paid for the period.
It paid $407,857,571 in January, $236,700,314 in February, $141,868,647 in March and $300,590,276 in April. The corporation paid $149,876,805 in May, $214,398,900 in June and $168,129,620 in July.
In July, N61,615,100,170 (equivalent to a functional dollar of $312,767,005.94 at a budgeted exchange rate of N197/$) was transferred to joint venture cash call from domestic crude oil receipts of N90,815,444,663 in addition to the $168,129,620.
The NNPC is expected to pay $712.46m to its joint venture partners monthly for the development of oil and gas assets, translating into $8.55bn for the year, up from $7.39bn in 2015.