© 2019 - International Centre for Investigative Reporting
Nigeria to retain 40 per cent ownership in JV partnership with foreign oil companies
THE Federal Government has directed the Nigerian National Petroleum Corporation, NNPC, its oil holding firm to cut down its stakes in Joint Venture oil assets to less than 40 per cent within the 2019 fiscal year by selling its stakes which would boost its finances.
In a tweet on the official Twitter handle of the Presidency, the Minister of Budget and National Planning, Udo Udoma, disclosed the government’s plan to reduce its stakes in the assets.
“President @MBuhari has directed that immediate action be commenced to restructure the Joint Venture Oil Assets so as to reduce @AsoRock shareholding to not less than 40 percent and that this exercise must be completed within the 2019 fiscal year.” — Budget Minister Udo Udoma
— Presidency Nigeria (@NGRPresident) May 29, 2019
All parties share in the cost of operations. The operator is the one to prepare proposals for the programme of work and budget of joint expenditure on an annual basis, which shall be shared on a shareholding basis
The Economic Recovery and Growth Plan released in 2017, revealed that Nigeria was set to earn $115 million from giving up its stake in JV oil assets, refineries and other downstream subsidiaries such as pipelines and depots according to a report.
The ICIR had earlier reported that the outstanding cash call debt owed by the Federal Government in its JV operations with the foreign oil firms are worth $3.6 billion after paying off $1.5 billion.