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We’ve kept up with $5.1bn JVCC repayment plan — NNPC

We’ve kept up with $5.1bn JVCC repayment plan — NNPC
By Edith Ike-Eboh
The Nigerian National Petroleum Corporation (NNPC)  says it has kept to the terms of the agreement of the 5.1 billion dollars repayment plan it entered into with international oil companies with respect to the Joint Venture Cash Call  (JVCC).
The Corporation disclosed this in a statement signed by its  Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu,in Abuja, on Sunday.
It also stated that the Federation Account Allocation Committee (FACC) meeting was regularly briefed on this development and would receive a briefing update at the next scheduled engagement.
According to the statement,  NNPC is able to secure a reduction in the cash call arrears from 6.8 billion to 5.1 billion dollars.
This, it said saved  the country 1.7 billion dollars, adding that it was agreed that the balance would be paid over  a five-year period through incremental crude oil production.
“The administration of President Muhammadu Buhari inherited a cash call arrears of $6.8 billion dollars, unpaid by previous administrations.
“President Buhari subsequently directed NNPC to resolve this challenge which had led the IOC JV partners to drastically reduce investment in the Nigerian oil sector.
“Based on Mr. President’s directive, NNPC engaged the IOCs and negotiated the cash call arrears down from 6.8 billion to 5.1 billion dollars saving the country 1.7 billion dollars.
“NNPC then set a repayment plan in place. The key point with the repayment plan was that the arrears would be repaid from incremental production over a five-year period so that base production would be preserved.
“This arrangement was translated into a Repayment Agreement which was further endorsed by the Governors at National Economic Council and approved by Federal Executive Council,” it said
The statement further stated that to date, NNPC had kept to the terms of the Repayment Agreement.(TOOMUCHGIST)

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