The Nigerian National Petroleum Corporation, NNPC, said it has revoked licenses of six companies over unpaid remittances.
The NNPC in statement that the affected oil companies are Pan Ocean Oil Corporation (OML 98); Allied Energy Resources Nigeria (OML 120 and 121); Express Petroleum and Gas Company (OML 108); Cavendish Petroleum Nigeria (OML 110) and Summit Oil International (OPL 206).
The Department of Petroleum Resources, the unit of the NNPC overseeing licenses said the revocation was in activation of a presidential directive to “recover legacy debts” owed by the companies operating the licences.
The arrangement that led to the issuance of the OMLs was a joint venture agreement between the federal government and the oil companies granted the licenses which requires them to make payment of certain percentage of mining revenue to the government.
Nigeria’s is Africa’s largest oil producer with about 1.9 million barrels of oil produced daily. Nigeria’s reliance on oil for more 70% of its forex earnings puts pressure on the continent most populous country to manage inflation and invest in critical infrastructure.
