Abuja - The Senate has mandated its Committees
on Gas, Petroleum Upstream, Finance and Appropriation to investigate the
operations of the Nigerian National Petroleum Corporation (NNPC) Joint Venture
Cash Calls obligations.
This follows a motion sponsored by Senator Bassey Albert
Akpan, representing Akwa-Ibom North-East, who said the National Assembly had
been appropriating for the NNPC Joint Venture
Cash Calls obligations in the past, with the current outstanding cash
call obligations in the oil and gas sector standing at over $6 billion.
Akpan further stated that the cash calls were treated as
first line items by NNPC before remitting available balance on its collectibles
revenue from crude sales to the federation account.
“Such should be treated in accordance with fiscal
appropriation approval of the National Assembly,” said the legislator.
Also read: Labour shuts down NNPC offices nationwide
The lawmaker observed the effective utilization of the Joint
Venture cash call will enhance production, reserve sustainability and the
general portfolio management of the oil and gas industry.
He expressed concern that the inability of the NNPC to meet
its Joint Venture cash call obligations had led to loss of confidence by
investors in the oil and gas sector.
Akpan also expressed concern the crude oil production from
the obligations between NNPC and the international oil companies (IOCs) had
declined by 47 percent as at the last quarter of 2015 due to the inability of
the federal government to meet its cash call obligations.
Most senators supported the motion.
Senate President, Bukola Saraki, said the funds involved in
the Joint Venture Cash Call were enormous and the “right thing” should be done,
suggesting a probe.
- CAJ News