Govt, oil workers agree on new funding model for JV projects

Pengassan_117 July 2016, Abuja – The Federal Government and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have agreed a new funding model to help end the perennial Joint Venture cash-call problem in the country’s oil and gas industry.

The workers and representatives of the Federal Government also approved the repayment structure proposed by the Nigerian National Petroleum Corporation (NNPC) to off-set the arrears of the old cash calls inherited by previous governments over the years.

These were part of the resolutions reached by PENGASSAN with the government, before the union suspended its recent strike.

Details of the new funding model proposed by the Ministry of Petroleum Resources in conjunction with the NNPC were not stated, however.

But, PREMIUM TIMES understood it will not be different from the proposal by the Minister of State for Petroleum Resources, Ibe Kachikwu, early last year on the issue.

Nigeria has hardly met its oil and gas industry development plans over the years as a result of the inability of government, through the NNPC, its representative in the six joint ventures, to meet its statutory funding obligations to its partners.

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