The Nigerian government has started talks with some international oil companies and investors to seek joint efforts in paying the accumulated debt owed by the Nigerian oil sector (NNPC). The debt accumulated through through the board and member mismanagement of previous regimes.
The oil debt which is between $3.5 billion to $4 billion has become a crippling hindrance to the growth of business in the oil sector through international joint markets. The African oil business has the highest economy influence through production-share contracts and Joint Venture (JVs) of which Nigeria was unable to pay her part since 2012.
The present administration has devised a plan to increase Nigeria’s oil manufacturing output from 2.3 million barrels per day to 2.5 million barrels per day, and complete the payment of debts before the beginning of year 2017 through the aid of investment and cooperation of some oil companies, such as Italy’s Eni and oil traders Vitol and Gunvor.
According to a statement made by The Minister of State for Petroleum Resources; Emmanuel Ibe Kachikwu the “NNPC has a plan of improving joint ventures with local firms in order to increase productivity trends, but it needs the Petroleum Industry Bill (PIB), which has been delayed by the senate for a year now”.
Kachikwu also confirmed that the NNPC was in talks to speed up the processes of the bill by splitting the PIB into three segments which will contain taxation, governance and business items such as oil block licensing.