According to The Nation, the Federal Government is set to to raise funds from international investors and the private sector next year in an effort to fund the Joint Venture Cash (JVC) call between the Nigerian National Petroleum Corporation (NNPC) and multinational oil companies operating in Nigeria.
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, reportedly announced this development at an interactive session for Nigerians in Austria.
As cited by the NNPC Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, Kachikwu stated that high level discussions were already taking place with the investors for the JVC. Upon implementation, the burden of funding capital by the FG for upstream projects in the oil and gas sector would be greatly lessened. The NNPC’s estimated 5,000 km of pipelines will soon be privatized in addition.
“The new model is that refineries will now buy their own crude oil, refine it and make remittances to the Federal Account Allocation Committee (FAAC). They will operate a semi-autonomy system that will enable them run in a profitable manner,” Kachikwu stated.
Source: The Nation
