ExxonMobil Accuses Nigerian Govt Defaulting In Partnership Agreement
The Joint Venture arrangement between ExxonMobil and the federal government on oil and gas activities in the country is being threatened as the latter has been accused of defaulting in its financial obligations to the operation, business and commitment of the multinational oil firm.
Speaking at a business review session after the presentation of the 2015 Energy Outlook series held in Uyo, Akwa Ibom State, the manager, Field Law Services of ExxonMobil, Mr. Omojuwa Oteri, said the company’s operation has witnessed 53 per cent decline because of failure of partners to honour cash call obligations.
According to him, the American oil giant started experiencing decline in its production activities 10 years ago due to non-release of 60 per cent cash call arrears by the joint venture partners.
“Our joint venture production over the last 10 years had been declining up to about 53 per cent. This is majorly because of our joint venture partners’ failure in several instances to honour their cash call obligations to the business”, he said.
Oteri explained that the federal government, which is represented by NNPC, was contributing 60 per cent to the joint venture while ExxonMobil paid the balance of 40 per cent.
He said the failure of partners to pay obligations to the joint venture had impacted negatively on investment outlook and profitability of the business.
“In addition to this problem, we now find a global trend where the price of oil is right now close to 40 dollars per barrel. This affects profitability of our business and outlook for investments”, he stressed.
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