FG, NNPC Owe Multinationals $10b In Crude Oil Over-Lift

FG, NNPC Owe Multinationals $10b In Crude Oil Over-Lift

The Federal Government through the Nigerian National Petroleum Corporation (NNPC), is owing International Oil Companies (IOCs) about $10 billion in unpaid crude oil over-lift bills, The Nation reports.

The huge debts build-up in the last few years, were as a result of  over-lifting of crude oil due to the government as royalty from the oil fields. It was learnt that the NNPC that superintends government’s interests in these oil acreages, often comes to these facilities with vessels to lift crude with a promise to reconcile the transactions with the operating companies, but in most cases, it never did.

A source who spoke on condition of anonymity, said the oil majors in Nigeria have been battling this problem over the years, saying the worrisome aspect of the issue is that the crude oil being lifted comes from oil fields developed under the Production Sharing Contracts (PSCs) arrangement.

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