“To encourage the existing players in the industry, particularly the traditional JV partners, we undertook to settle all outstanding cash call arrears amounting to 5 billion dollars. “This has restored confidence in the Nigerian oil and gas industry.
“undertook to settle all outstanding cash call arrears amounting to 5 billion dollars”.
Does this mean back payments owed for already produced oil have been made to entities such as Eroton and down the chain to SLE or is it a promise to pay situation possible at the end of this year 2018 - can anyone confirm this thanks?
in this article NNPC state the words " including settling"
He assured the NNPC was working hard to keep the sanctity of all contracts so that investors are given the right framework to operate.
Some of the measures taken to attract investments, Baru noted, include settling all outstanding cash call arrears amounting to $5billion dollars, a development that has restored confidence in the Nigerian oil and gas industry, he noted.
eroton are owed 2015/2016 cash call…2017/2018 are/ have been paid!!
sorry…so the outstanding cash call arrears imo would be 2015/2016!!..we will see.
JV cash calls: IOCs commends NNPC ON JULY 4, 20187:28 PMIN BUSINESS, NEWS2 COMMENTS The International Oil Companies (IOCs) operating in Nigeria’s oil industry have commrended the Nigerian National Petroleum Corporation (NNPC) on the payment of all thejoint Venture (JV) cash calls arrears. Group Managing Director of the NNPC, Dr Maikanti Baru They made the commendation at the on going Nigerian Oil and Gas Conference and Exhibition, in Abuja on Wednesday. They added that investment confidence and appetite were gradually coming back to the industry following the settlement of joint venture (JV) cash call arrears owed them by the NNPC. The NNPC in December 2016 got a discount of $1.7 billion from $6.8 billion cash call debt to its JV partners, and was asked to pay $5.1 billion instead. The IOCs include Mobil Producing Nigeria Unlimited (MPN); Shell Petroleum Development Company (SPDC); Total Upstream Companies in Nigeria (TEPN); and Chevron Nigeria Limited (CNL) among others. The chief executives of the IOCs who spoke on investment opportunities in the sector said they were glad the issue which obstructed negotiations for investments in Nigeria at their boards, was now off. “For as long as I have been in this industry, we have been discussing cash call as a never-ending issue, I think that we were able to sit down together as an industry and government to try and tackle that issue and we should not underrate the importance of that. “What that has done is that it opens up the appetite to have a conversation about investment. “Nigeria is competing for capital with every other country in the world and sometimes we forget that and think that we are world unto ourselves, but the reality is that each of these companies operate in 20, 30, 80 countries and people are competing for capital,” said Osagie Okunbo, Country Chair of Shell companies in Nigeria and Managing Director of SPDC. Osunbor further stated: “If the first thing that happens in your discussion is that debts that has been properly incurred are not being paid by your majority partner, it moves that argument before you may even start a conversation. “What is of significant today is that argument is off the table. For the first time, we finished a year without NNPC owing cash calls. ” I have a current CFO in Shell who was here five years ago and just returned, he says he cannot believe what is happening. “Essentially what he spent his time here was chasing cash calls from NNPC, today, he doesn’t have to do that. That just essentially opens up the appetite.” He stated that the industry must however insist of making the arrangement work, adding that there is the need to put our hands on the plough to ensure it does not derail. “We cannot take it for granted that we have a funding structure that works and assume it will continue to work. “I opened the paper sometimes and read that the governors have instructed NNPC to suspend payment of JV cash calls. We can’t do that, it is important that the very basis that underpins the progress we have seen in the industry is sustained.” he said Osunbor, explained that issues around security, contracting cycle, sanctity of contracts and thresholds of JVs and Production Sharing Contracts (PSCs) still needed to be sorted, as well as the reform laws in the industry. Also, the Managing Director of CNL, Jeff Ewing, stated that government did well in clearing the JV arrears. “The execution of those agreements have gone very well, and it has really boosted our confidence in the JV. “Some of the things that have happened have increased our activities in the JV because we have come confidence.” Ewing, however explained that the rise in oil prices had brought a. Level of confidence as regards uncertainties in the industry. He added that Nigeria needed to be competitive globally in the fiscal policies and ease of doing business adding that it was part of the IOCs discussion with government. “The government is making some good steps on the PIB, changes to the JV oil terms – we are looking forward to that. We have also talked about our concerns in the public hearing on JV gas in deep-water terms, they need to be competitive to draw more money into Nigeria. “We see a lot of potentials in Nigeria, there is a big oil and gas reserves here; we just need to have the right framework in place to have a globally competitive fiscal prices in place to help us develop,” he added. Similarly, the Managing Director of MPN, Paul McGrath, explained that: “To unlock the potentials in the country, we need first of, certainty. The recent work that is being done in the petroleum industry bill and the reform in the national assembly, is an excellent piece of work, but it needs to have an end result.” “We need to have an industry reform bill or set of bills that will attract international investment not push it away. I’ve been very encouraged with the dialogues we’ve had with the national assembly and the technical teams till date. “They have listened, they are listening and tried to engage the industry and I think that is very interesting but at the end of the day, we need to stop talking about industry reform, have industry reform and then move on and unlock the potentials,”
NNPC got a 25% “late payment discount” and then took another 18 months to pay?
whatever - the IOCs are happy and this is real evidence that Nigeria is trying very hard to put its house in order and so they should since oil is their major revenue generator and price of oil now back to highly commercial levels
+15% today. News tomorrow?
tp, it seems some people are in the know … perhaps boosted by the all round rises today …
that interview is now out of date…oil production has commenced!!..nice to see 60/75mill scufs a day being produced
Very interesting …notore lists on NSE!!
The Exchange listed 1.612 billion ordinary shares of Notore Chemical Industries Plc at N62.50 per share. The listing which is the first this year was done in the industrial goods sector of the NSE. Notore , which is a vertically integrated agro-allied, chemical and power group based in Onne Rivers State has six subsidiaries. They are Notre Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited. Speaking on the reasons for the listing on the NSE, the Group Managing Director/Chief Executive Officer of Notore Plc, Mr. Onajite Okoloko, said it is to support the Nigerian government’s effort to deepen the capital markets, improve liquidity and tradability of the company’s shares, increase its visibility and credibility in the Nigerian market and beyond. “The listing will also increase access to capital in order to fund the company’s future growth initiatives and grant Nigerians the opportunity to participate in the Notore’s growth history,” he said.
Thanks Linksdean. Seems to be no stopping Okoloko and that just has to be good for us on a number of fronts.
Looks DPR watching suntrust keep to guidelines etc!!!
Deutsche have a buy on sle of 405p!!..have look!!
Hi Links How do I have a look the data II is blank -can you post please - just threw it over to LSE putting the cat amongst the legal eagles discussing the imminent bankruptcy of SLE should produce some fun??