Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Nigeria's NNPC says it paid debts owed to Mobil Producing Nigeria

Published 03/07/2019, 21:06
Updated 03/07/2019, 21:10
Nigeria's NNPC says it paid debts owed to Mobil Producing Nigeria

LAGOS, July 3 (Reuters) - Nigerian state oil company NNPC on
Wednesday said it had fully settled its debts to ExxonMobil's
local subsidiary with a payment of $833.57 million.
NNPC said the money to Mobil Producing Nigeria (MPN) settled
long-standing debts owed via "cash calls," or costs that it is
obligated to pay to joint-venture partners in oil and gas
exploration and production.
As of late last year, NNPC said it still had to make up
payments of $3.95 billion to oil companies as part of the cash
call debt. The outgoing head of NNPC, Maikanti Baru, said the debt had
been paid with incremental production, and "would invariably
lead to an increase in revenue to the government."
In June, ratings agency Fitch said the cash call backlog
clearance was constraining Nigeria's budget receipts from oil
and gas extraction. The debts to Mobil and other producers have also curtailed
investments in the sector.
NNPC said it had also signed an agreement with the company
for pre-production costs of just over $1 billion for developing
Oil Mining License 130 and Oil Prospecting Licence 222.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.