• 53 mins Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
Brazil Sees Oil Exports Soar

Brazil Sees Oil Exports Soar

Latin America has seen significant…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Oil Majors Set To Receive $5.1 Billion From Nigeria In Unpaid Loans

Oil storage tanks

Royal Dutch Shell, Exxon Mobil and others will receive $5.1 billion from the Nigerian government for unpaid bills dating back to 2015, according to a new deal reported by Reuters.

The state-owned Nigerian National Petroleum Corporation (NNPC) owed a total of $6.8 billion as of December 2015 in “cash-calls,” but struggled to pay back the operational loans due to low oil prices and a domestic militancy that caused half of the West African country’s oil to go offline for large chunks of 2016.

The new deal allows the government to pay the reduced amount over five years, without interest. Instead of cash, the Western oil companies will get their payments in the form of oil cargoes, but only when Nigerian oil production exceeds 2.2 million barrels per day.

"If for any reason we did not meet (the) threshold we will not pay the $5.1 (billion), so that is fantastic," Nigerian Oil Minister Emmanuel Ibe Kackikwu said of the deal. Next, the deal will head to the National Economic Council, a governmental advisory group, for approval.

In addition to Shell and Exxon, Italy’s Eni, U.S.-based Chevron and France’s Total are also involved the deal. All five refused to comment upon Reuters’ request.

Over the course of 2016, the Nigerian oil sector has accumulated more than $2.5 billion in debt to finance existing projects, according to the petroleum ministry.

Lagos’ oil-related lawsuits don’t stop here.

In September, news broke that the Nigerian government is suing Chevron, Eni, Total, Shell, and Petrobras for illegally exporting crude oil worth $12.7 billion in the years between 2011 and 2014. Exxon may also join the list of defendants.

According to government officials quoted by the Associated Press, the five companies failed to declare 57 million barrels of crude exports for the period, bound for the U.S.—which was discovered through discrepancies between departure and arrival declaration figures, with some loads not declared upon departure at all – suggesting that the problem is related to the country’s rampant corruption.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News