Nigeria says it expects that the resumption of payment of the $5.1bn owed to international oil companies, IOCs should unlock investment of as much as fifteen billion dollars.
The long awaited payment will commence this month, Minister of state for petroleum Ibe Kachikwu said in an email statement to Boomberg.
The debt is owed oil companies, including Exxon Mobil Corp. and Royal Dutch Shell Plc,“The initial payments would be made by the end of April 2017,” Kachikwu, said in an emailed statement Wednesday.
The energy companies are expected to reciprocate “by ensuring that they ramp up investments in the country’s oil and gas sector,” he said.
Nigeria reached the repayment deal in November with producers including Exxon, Shell, Chevron Corp., Total SA and Eni SpA that pump about 80 percent of the country’s crude in joint ventures with the state-owned Nigeria National Petroleum Corp.
The debt, incurred from 2010 to 2015 due to Nigeria’s inability to make its share of capital contributions to the joint ventures, will be settled through crude sales over five years and will be interest-free, Kachikwu said at the time.
