(Ecofin Agency) - Starting from next month, the Federal Government of Nigeria will commence the payment of $5.1 billion joint venture cash calls owed International Oil Companies (IOCs) in the country, according to the Minister of State for Petroleum Resources, Emmanuel Kachikwu (photo).

Speaking on the sideline of the first Nigerian Oil and Gas opportunity Fair organized in Akwa Ibom on Wednesday, the Minister explained that the government is looking at ways to exit the cash calls. “We had reached an agreement with the majors in December. We are trying to finalize the first stage of the payment in April,” he said.

He noted that the decision to prioritize the fulfilment of the financial obligations is part of plans to increase investment in the oil and gas sector.

According to Kachikwu, the government also wants the foreign oil companies and other operators to extend their investment commitments to other areas of the oil and gas sector.

“We have the capacity to grow oil production in this country in excess of three million barrels per day. We are focused on local refining because, after 40 years, our refineries are decrepit, so the time has come to move away from transporting and exporting crude, to being able to refine petroleum in its every facet. It must be to drill to refine and export,” he added.

Anita Fatunji