The Nigerian National Petroleum Corporation (NNPC) recently made a public announcement that it would take at least three years to completely convert some of its existing oil production joint ventures (JV) into the Incorporated Joint Venture (IJV). The corporation has embarked on this journey by starting out on the restructuring of its Exploration and Production (E&P) arm, the Nigerian Petroleum Development Company (NPDC) and making payment of outstanding cash call debts to joint venture partners in preparation for the transition of the JVs into IJV. The IJV arrangements would allow for independence of the JVs as the latter would be granted autonomy to control their own budgets, similar to existing gas firms such like the Nigeria Liquefied Natural Gas (NLNG) which sources for its own funding, pays taxes and royalties and also pays dividends to the government from its operations.
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