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Nigeria Exits Joint Venture Cash Calls With Oil Companies

Nigeria on Thursday, signed a landmark agreement to exit cash calls on Joint Venture crude production with intertnational oil partners. In a statement released by … Continue reading Nigeria Exits Joint Venture Cash Calls With Oil Companies


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Nigeria To Exit Joint Venture Cash Calls With Oil CompaniesNigeria on Thursday, signed a landmark agreement to exit cash calls on Joint Venture crude production with intertnational oil partners.

In a statement released by the Ministry of Petroleum Resources, the new framework would increase Nigeria’s annual revenue by two billion U.S dollars, and push net revenue outlook to 14 billion dollars by the year 2020.

The oil firms agreed to a five-year repayment of outstanding cash calls estimated at six billion dollars via incremental production by each of the joint venture firms.

Nigeria’s Deputy Petroleum Minister Dr Ibe Kachikwu said the new exit arrangement would restructure the country’s template for oil earnings, increase investments and boost government revenues.

The arrangement would ensure payments of statutory oil and gas royalties and taxes to the Nigerian government by all parties in the joint venture.