The Nigerian
National Petroleum corporation, NNPC, says its four most recent investments
with key upstream joint venture partners can increase Nigeria’s revenue by
over
$30 billion in the next decade.
The Group
Managing Director, GMD, of the Corporation, Maikanti Baru, disclosed this on
Monday at the inauguration of the reconstituted NNPC Anti-Corruption Committee
in Abuja.
According to
a statement on Tuesday by the corporation, Mr. Baru said: “These four projects
alone are going to raise incremental revenues to Nigeria of over $30 billion
over the life of the projects in less than 10 years.
“They will
also serve as part of the vehicle for exiting JV Cash Calls. We have to pay our
arrears of about $6 billion that were incurred pre-2016 and we are also paying
up a tranche of about $1 billion 2016 arrears. We started in April 2017 with
the payment of $400 million and we will pay the balance before the anniversary
of the first payment,” Mr. Baru said.
He said the
investments, which attracted close to $3.8 billion worth of foreign direct
investments, would be a vehicle to speed up the prevailing post Cash-Call exit
era.
The $1.2
billion multi-year drilling for 36 offshore/ onshore oil wells under the NNPC/
Chevron Nigeria Limited, code named project Cheetah and the NNPC/First E and P
JV and Schlumberger tripartite $800 million alternative funding agreement for
the development of the Anyalu and Madu fields in the Niger Delta, were listed
by the GMD as the critical Joint Venture alternative financing Upstream
Investment.
The
agreements executed in London last week for the $1billon NNPC/SPDC JV Project
Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, previously
financed through JV Cash Call, were also listed by Mr. Baru.
The NNPC
finance and technical teams were commended by the GMD for successfully
attracting the needed foreign investment as it became increasingly difficult to
attract foreign credit facilities.
According to
Mr. Baru, the arrangement would allow the NNPC to subsequently function from the
production revenue, less the first line charge to government, which are the
royalties and petroleum profit tax.
He said
whatever profit accrues subsequently, would be remitted to the government after
the deduction of the cost of production.
The GMD traced
NNPC’s participation in the anti-corruption campaign to year 2000 when the
federal government directed all its Ministries, Departments and Agencies, MDAs
to inaugurate in-house Anti-Corruption Committees, stating that the NNPC was
the first to put one in place, which he chaired in October 2000.
Mr. Baru, on
the anti-corruption campaign in relation to the quest for revenue, urged
members of staff to never allow corrupt practices to distract them from the
great task ahead.
He noted
that through organising workshops, sensitisation campaigns, seminars and
federal government publications on issues concerning corruption and economic
crimes, the NNPC Anti-Corruption Committee had consistently carried out its
mission of eradicating corruption within the commission.
The GMD
further urged the new members being inaugurated to exceed the achievements of
the past committees in line with the present administration’s anti-graft
agenda.
He
emphasised that the prevailing global economic reality was to change from old
ways of doing business and embrace the best practice of transparency,
accountability and honesty with integrity.
He also
thanked the former committee members for a job well done
The newly
inaugurated head of the NNPC Anti-Corruption Committee is Group General Manager
in the Finance and Account Directorate and veteran anti-corruption crusader,
Mike Balami.
Mr. Balami
pledged the readiness of the newly inaugurated committee members to work
harmoniously towards achieving a corruption-free NNPC.
He urged the
reconstitution and inauguration of the anti-corruption units by heads of
Strategic Business Units and Corporate Services Units in order to work closely
with the Corporate Anti-Corruption Committee to ensure a corruption-free NNPC.
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