The Nigerian National Petroleum Corporation (NNPC) will no longer rely on the federal government to fund its Joint Venture Cash Calls, its Group Managing Director, Dr Maikanti Baru has said.
In a series of twitts @NNPCgroup, Baru who spoke at Umblical Flow-lines and Risers (UFR) for the Egina Deep Offshore Project by Saipem Contracting Nigeria Limited, in Port Harcourt, said the Joint Venture Cash Call is part of its 12 Focus Business Areas.
He said: “Under this important business focus area, we will also create a sustainable and long term plan for JV funding. PPT rate at 85 percent for JV while royalty varies between 18.5-20% of gross revenue”.
He said the “cost required to sustain our operations only constitutes between 18-25 percent of gross revenue which is funded via cash calls on yearly basis.
“Government revenue will therefore not be utilised to fund cash call. Hence exiting cash call does not mean exiting the revenue payment to government.
“The JV cash call exit is to ensure that we don't have to go to the treasury every month in order to source money for finding our operations.
JV cash call is a critical part of our 12 Business Focus Areas where we intend to settle all our cash call arrears.
He restated the commitment of the corporation to the development of Nigerian content in the oil and gas industry.
He noted that the “successful commissioning of the UFR module will guarantee the drilling of the first oil from the 200, 000 barrels per day Egina field by the first quarter of 2018”.
According to him, what is being celebrated was the efficacy of the Nigerian Content Act and the NNPC is strongly committed to the successful implementation of all provisions of the Act.
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