- Debt of $2.3 billion to Exxon Mobil has been fully paid: NNPC
- Nation still owes a total of $1.7 billion to the oil majors
2:02Nigeria Pays Oil Majors $3 Billion for Past Operational Dues .
According to Report from Bloomberg,Nigeria reimbursed oil companies including Exxon Mobil Corp. and Royal Dutch Shell Plc $3 billion, moving closer to clearing operating expense arrears owed since 2010.
The payment is being settled through a five-year crude oil sales deal agreed in 2016, Nigerian National Petroleum Corp. said in a statement. While a majority has been paid as of August, there’s still about $1.7 billion outstanding. Exxon has got $2.3 billion, clearing all dues. Shell has received $455 million, but is still owed $917 million.
NNPC operates joint ventures with producers including Exxon Mobil, Shell, Chevron Corp., Total SE and Eni SpAthat pump about 80% of Nigeria’s output. Lower revenue and demands for other payments hampered NNPC’s ability to contribute its share of expenses from 2010 to 2015, leading to the arrears.
It still owes Eni $385 million, Total $304 million and Chevron $55 million, according to the statement. The oil majors didn’t immediately respond to requests for comments.
| PAID AS OF AUGUST | OUTSTANDING | |
|---|---|---|
| Exxon | $2.3b | none |
| Shell | $455m | $917m |
| Chevron | $1.04b | $55m |
| Total | $307m | $304m |
| Eni | $390m | $385m |
| Source: NNPC |
Nigeria had agreed a $5.1 billion settlement with the international oil companies four years ago. As of July 2019, NNPC had cleared $2.3 billion.
The Nigerian state-run company on Oct. 15 published audited accounts for only the second time in its 43-year history. The report showed its annual loss shrank to just a few million dollars last year from about $2 billion in 2018 as it slashed costs across its operations.