The Nigeria National Petroleum Corporation, NNPC said it has paid a total of $993.7 million up to September in arrears owed to its joint ventures with multinational oil companies.

So, NNPC and some oil companies are in a joint venture. This cash call is a financing option that the they use to raise funding for their oil exploration deals.

NNPC hadn’t been honouring its own obligations and was therefore indebted.

Those are the arrears the corporation is saying it has paid.

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The NNPC also said it was seeking to raise about $2.3 billion in financing from third parties, such as joint venture partners, to help cover costs.

It said it was raising $3.15 billion through a firm called SEEPCO to develop 416 million barrels of reserves from the Oil Mining Licence (OML) 13 field.

NNPC’s delay in payments has hindered oil and gas investment in Nigeria and worsened a budget crisis as the government seeks to increase spending to boost an economy still recovering from a recession.

The Minister of State for Petroleum, Ibe Kachikwu said this month Nigeria was producing 1.78 million barrels per day, bpd.

In November, NNPC said it would increase oil production in 2019 to 1.8 million barrels per day (bpd). At that time it was producing roughly 1.6 million bpd.

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