By Onome Ohwovoriole
The Nigerian National Petroleum Corporation (NNPC) may fund NNPC/TEPNG JV’s Ikike Project, NNPC/SPDC JV Southern Swamp and Associated Gas Solution Step 2 Project, among others through the capital market.
Group Managing Director (GMD), Maikanti Baru disclosed this at the 2018 Nigeria Oil and Gas Strategic Conference and Exhibition.
The corporation recently announced the signing of the final contractual agreement with Schlumberger, for the Anyalu and Madu oil fields under Oil Mining Licences (OMLs) 83 and 85, offshore Nigeria.
Baru did not, however, disclose when the proposed capital raise would take place or the mode.
The Joint Operating Agreements (JOA) is the basic, standard agreement between the NNPC and the operators. It sets the guidelines/modalities for running the operations.
The NNPC reserves the right to become an operator. All parties are to share in the cost of operations. Each partner can lift and separately dispose of its interest share of production subject to the payment of Petroleum Profit Tax (PPT) and Royalty.
The operator prepares proposals for programme of work and budget of expenditure on an annual basis, which shall be shared in proportion of shareholding.
The corporation has six Joint Venture operations with Shell Petroleum Development Corporation (SPDC), Chevron Nigeria Limited (CNL), Mobil Oil Producing Unlimited (MPNU), Nigerian Agip Oil Company (NAOC), Texaco Petroleum Overseas Company of Nigeria Unlimited (TOPCON), and Elf Petroleum Nigeria Limited (EPNL).
President Muhammadu Buhari inherited a cash call arrears of $6.8 billion, unpaid by previous administrations.
This was negotiated downwards from $6.8 billion to $5.1 billion, and a repayment plan put in place. This would be paid from incremental production, over the next 5 years.
State governors recently kicked against the low Federal Account Allocation Committee (FAAC) receipts from the corporation, and have asked for an investigation.
The Corporation’s move is in line with moves by several state-owned oil corporations. Saudi Arabia has taken steps to list 5% of its national oil firm, Aramco on its stock exchange in late 2018/early 2019.
Russian oil corporation, Rosneft had an Initial Public Offer (IPO) in July 2006 raising $10.4 billion.
The Nigerian National Petroleum Corporation (NNPC) was established on April 1, 1977. In addition to its exploration activities, the Corporation has powers and operational interests in refining, petrochemicals and products transportation as well as marketing.
The Nigerian Stock Exchange (then known as the Lagos Stock Exchange) was founded on the 15th of September, 1960. Trading, however, commenced on the 5th of June, 1961. The Exchange was renamed the Nigerian Stock Exchange in December, 1977.