5 1bn cash call dispute with nigeria over iocs
A very specific and interesting topic!
The dispute you're referring to is likely the ongoing controversy between Nigeria and the International Oil Companies (IOCs) operating in the country over a $5.1 billion cash call dispute.
Here's a brief summary:
In 2010, the Nigerian National Petroleum Corporation (NNPC) and the IOCs (including Shell, ExxonMobil, Chevron, Total, and Eni) agreed to a cash call arrangement, where the IOCs would provide financing for the development of oil and gas projects in Nigeria. The cash call was meant to be a joint venture between the NNPC and the IOCs, with the NNPC providing the majority of the funding.
However, the IOCs have been disputing the amount of cash calls they have made to the NNPC, claiming that the corporation has not fulfilled its obligations to pay its share of the funding. The IOCs argue that the NNPC has not paid its share of the cash calls, which has resulted in a debt of $5.1 billion.
The dispute has been ongoing for several years, with the IOCs threatening to reduce their investment in Nigeria's oil and gas sector if the dispute is not resolved. The Nigerian government has also been under pressure to resolve the dispute, as it has implications for the country's economy and energy security.
In recent years, there have been some developments in the dispute, including:
- In 2020, the Nigerian government and the IOCs agreed to a framework for resolving the dispute, which included the establishment of a joint committee to review the cash call arrangement.
- In 2022, the joint committee submitted its report, which recommended a settlement of the dispute. However, the details of the report have not been made public.
- In August 2022, the Nigerian government announced that it had reached a tentative agreement with the IOCs to settle the dispute, but the details of the agreement have not been disclosed.
The dispute is still ongoing, and it remains to be seen how it will be resolved.