Nigeria Reaches 5.1 Billion Debt Settlement With Oil Majors

Nigeria reached a $5.1 billion settlement to reimburse foreign oil companies including Exxon Mobil Corp. and Royal Dutch Shell Plc for past operating costs.

The amount, less than the $6.8 billion previously discussed, will be settled through crude-oil sales over five years and will be interest free, Petroleum Minister Emmanuel Kachikwu told reporters in the capital, Abuja, Thursday.

“What we have been able to put together has enabled us to shave about $1.7 billion in savings for the federal government from the $6.8 billion that was owed,” he said. “The barrels to pay those will come from incremental barrels generated by the oil companies, not from the current 2.2 million-barrel-a-day production.

“In other words, if we do not meet those thresholds we will not pay the $5.1 billion,” he said.

Read more: http://www.bloomberg.com/news/articles/2016-11-17/nigeria-reaches-5-1-billion-debt-settlement-with-oil-companies