The Federal Government has commenced moves to restructure its Joint-Venture programme for oil exploration and production, with the aim of reducing its shareholding to not less than 40 per cent.
According to an announcement by the presidency, the new programme structure would have been completed by the end of 2019.
“President Buhari has directed that immediate action be commenced to restructure the Joint Venture Oil Assets so as to reduce government shareholding to not less than 40 percent and that this exercise must be completed within the 2019 fiscal year.”
The Joint Venture(JV) system in Nigeria’s upstream sector involves partnership between the Nigerian National Petroleum Corporation(NNPC) and International Oil Companies(IOCs) with the NNPC usually having 55 per cent stakes.
IOCs currently in JVs with the NNPC include Shell, Total and ExxonMobil.