IOCs embark on self-funding of joint ventures

Group Managing Director of NNPC, Dr. Maikanti Baru

The Federal Government has finally exited the crude oil Joint Venture (JV) cash-call policy it had with the International Oil Companies (IOCs) operating in the country.

The IOCs have therefore embarked on self-funding of all joint ventures operations.

The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, disclosed this yesterday in Lagos at the 14th Aret Adams Memorial Lecture.

Represented by the Chief Operating Officer, Gas and Power, Saidu Mohammed, he said these reductions were also effected in NNPC’s Unit Technical Cost (UTC).

Baru explained that the various reductions serve as incentives for investors to grow reserves, increase profitability and improve Return On Investment (ROI).

Speaking on the topic “Find More, Produce More,” he stressed that they would also boost revenue, thus improving government’s commitment to developmental projects across the country.

According to him, the NNPC has also renegotiated its deep offshore rig-rate from a staggering $580,000 to $164,000 per day, saving the country a 71.7 per cent cost of executing a similar operation in the past.

NNPC’s upstream operations, until lately, are in joint partnerships with the major oil companies.

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