FG postpones JV cash call exit to December

The Federal Government has shifted the deadline for the exit of joint venture cash call arrangement with oil companies to the end of this year. The government failed to exit the JV cash call arrangement in January in line with the agreement it reached with the international oil companies in December last year.

The nation’s oil and gas production structure is split between the JV (onshore and in shallow waters) with foreign and local companies, and Production Sharing Contracts in deep water offshore.

Under the JV arrangement, both the Nigerian National Petroleum Corporation and private operators contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio.