NNPC GMD Kachikwu, President Mahama, Reach Deal To Settle Outstanding Payment For Gas
SAN FRANCISCO, October 19, (THEWILL) – The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) and incoming Minister, Dr. Emmanuel Ibe Kachikwu and the President of Ghana, Mr. John Mahama Monday met in Kumasi, Ghana to resolve the outstanding debts owed Nigeria by the Volta River Authority (VRA) for gas supplied.
The agreement allows the VRA more time (last day of February 2016) to settle a backlog of debts believed to be around $171m, but it must pay in full the invoices for the months of August and September latest by October 31 or risk being cut off from supplies, sources with knowledge of the agreement told THEWILL.
THEWILL also understands that the Ministry of Finance has been directed to write requesting West African Gas Pipeline Company (WAPCO) to extend the November 5 date for the Ghanaian government's guaranty called WAPCO.
The debt covers gas supplied to VRA, which is 100% owned by the government of Ghana, and the cost of supply and transportation of the gas from Nigeria.
Nigeria had threatened to cut gas supplies to Ghana over the unpaid debts.
