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NNPC cash call funding arrears swells to $8.5bn


The Nigerian National Petroleum Corporation (NNPC) yesterday raised the alarm that its Joint Venture (JV) cash call arrears has hit an all time high of $8.5 billion as at 2016.
This was as its oil and gas revenue shrunk to $114.18 million in September from $183.93 million in August, representing about 36.9 per cent as against 17 per cent decline in August.
Group Managing Director (GMD) of NNPC, Mr. Maikanti Baru, painted the gloomy picture at the 34th Nigerian Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition with the theme, “Nigerian Oil and Gas Industry: Tackling Our Realities” held in Lagos on Tuesday.
The further drop in oil revenue is contained in the latest group financial report for the month of September, released by NNPC yesterday.
Given a further breakdown of the debt profile, Baru said underfunding of NNPC cash calls in 2016 alone is estimated to be about $2.5 billion, aside the inherited arrears amounting to over $6 billion.
To address the huge funding gap, the GMD said NNPC management with the Minister of State for Petroleum Resources and the JV partners to exit the cash call system and also clear funding arrears.
A JV operation is a standard practice in the ownership of oil and gas assets in Nigeria. It usually takes the form of an agreement between the national oil company, in this instance, the NNPC, IOCs and sometimes, indigenous oil companies.
Under the arrangement, all parties contribute to funding oil exploration and production operations in the proportion of their JV equity holdings and receive crude oil produced earnings in the same ratio.
On the planned JV exit strategy, Baru said the NNPC and the Ministry of Petroleum Resources are exploring alternative funding mechanism that allows the JV business finance itself by retaining its operating costs and capital allowances (fiscal costs) in order to sustain and grow the business.
“Where the fiscal costs for any year are not sufficient to fund the budgetary requirements of the JV, part of the profit margin could be retained to fund the budget and where necessary, external financing could also be sought to finance commercially viable and bankable capital projects without recourse to government treasury,” he said.
According to him, the import of the above is that the JV will relieve government of the cash call burdens by sourcing funds for its operations (estimated at $7-$9 billion annually). Further breakdown of the oil earnings show that contribution from crude oil amounted to $73.71 million while gas and other proceeds was $40.47 million.
Of the total receipt, the sum of $114.18 million and $Nil were remitted to fund JV cash call and Federation Account respectively.
The poor performance in revenue accruable to government coffers, according the the financial statement, is attributable to attack and sabotage of oil facilities in the Niger Delta.
‘‘At Forcados Terminal alone about 300,000bopd were shut in since February 2016, following force majeure declared by SPDC. A number of crude oil liftings were deferred until the repair is completed. Other major terminals affected by the renewed spate of vandalism include Bonny, Usan, Que Ibo terminals, and the recent attack on the Nembe Creek Trunk Line (NCTL),’’ the corporation said.

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12-year-old boy kills landlady as condition to be initiated into a cult

Ethiope East Local

A 12-year-old boy, who allegedly robbed and killed his landlady at Abraka, Ethiope East Local Government Area, Delta State, yesterday, was among those paraded for various offences by the state Police Command, yesterday.


The state Commissioner of Police, Mr. Zanna Mohammed, who briefed reporters on the arrest of over 60 kidnappers, robbers, murderers, cultists and ritualists in the last three weeks, said the teenager confessed that he committed the act because a cult group told him that one of the conditions for initiation was that he must have been involved in a criminal act.

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Super Falcons striker, Asisat Oshoala, comes to Falz defence with regards to statement about glorifying fraudsters

Asisat Oshoala

Nigerian professional footballer, Asisat Oshoala, who plays as a forward in the Chinese Women’s Super league for Dalian Quanjian F.C., took to her Instagram to express deep concern about how people are now proud to be fraudsters.



In Falz’ defense, she insisted fraudsters shouldn’t be glorified.

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Zimbabwean Church leader in s*x scandal as photos naked photos and sex acts with 33 girls is exposed

Church leader
A Zimbabwean church leader, Nyasha Light Nyatsungo is enmeshed in a sex scandal and might also be facing legal action, after his ex-girlfriend flooded social media with his nude photo.
It was gathered that the Nyatsungo allegedly sent a nude picture of his Cape Town based ex–side chick, Shingi Mavenge, to his other girlfriend only identified as Beula who later broadcasted it on social media.
According to H-Metro, in an apparent fit of rage, Mavenge posted a WhatsApp chat she had with Nyatsungo’s wife identified as Nyasha Nhahumbi as well as a group chat with some of her former lover’s concubines.
According to Mavenge, she has gotten information that Nyatsungo has at least 33 girlfriends and has ditched his wife of eight years.
She adds that Nyatsungo bedded a girl who was their neighbour as well.
Mavenge said that the church leader’s wife revealed that they even consulted their local pastor in Mutare who failed in his attempts to mend Nyatsungo’s ways.
According to H-Metro, Nyatsungo, a married father of two, has denied ever circulating the picture, labelling Mavenge as a bitter woman whom he just flirted with on Facebook and nothing more.
“This Nyasha guy must be stopped in his tracks. He is going to pay for all the damage that he has done to me. He was the only one who had that leaked picture and I am shocked why he would forward it to some other girl,” fumed Mavhenge who is working on taking legal action.
“I started dating this guy in 2015 and never knew he was married. He lied.”  fumed Mavenge yesterday.
“That guy is full of lies and at some point, we opened a group chat with his wife and some of his girlfriends. He normally targets single mothers” added Mavenge.
H-Metro was furnished with six other cellphone numbers of his girlfriend that include Fadzai, Mutsa, Essy, Juliana, Barbra among others. Mutsa confirmed she once had a relationship with Nyatsungo have since terminated it since she discovered he was married.
Mavenge confirmed they met once in Johannesburg when she had to fly from Cape Town to meet her man sometime in April.
“That night he didn’t even have money. I had to pay the R800 for the accommodation as he had no money. He wanted to have sex with me but I flatly refused. He even wanted it without protection and I said No. he looked terrible with clothes in a plastic shopping bag. I want to write a letter to Pastor Rex who is the head of (the church) in Harare so that this guy be stopped with his tricks and lies,” added Mavenge.
When contacted over the phone in Mutare Nyatsungo confirmed he knew Mavenge but never had a relationship with her.
“I know her and we once flirted on Facebook. We never had a relationship as she is alleging. I don’t know why she is bitter. I haven’t seen the nude pictures she is talking about but I heard about it from Beula. We live in a democratic country. She can go ahead and sue me if she feels her rights have been infringed upon. All the allegations she is making are false and I don’t know her motive in trying to tarnish my image,” said Nyatsungo.
He said he was still with his wife whose phone rang without response yesterday afternoon. Despite his denials, H-metro was furnished with pictures of Nyatsungo and Mavenge, the time they met in April.

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