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Author Topic: Government plans oil cash deal with Niger Delta Communities  (Read 1592 times)

Peter B

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Government plans oil cash deal with Niger Delta Communities
« on: October 18, 2009, 05:17:03 PM »
 LONDON, Oct 18 (Reuters) -- Nigeria plans to transfer 10 percent of its oil and gas joint ventures to residents of the oil-rich Niger Delta, in an attempt to end rebellion in the region, the Financial Times reported on Sunday.

The president's special adviser on oil, Emmanuel Egbogah, told the paper the president, Umaru Yar'Adua, backed the idea.

The president's spokesman was not immediately available for comment when contacted by Reuters.

The communities would receive cash benefits, delivered through a trust-style mechanism, which they could use individually or pool for social projects, the paper said.

Seven onshore joint ventures in the region between state-owned Nigerian National Petroleum Corporation and foreign oil groups produce 70 percent of Nigeria's production. The NNPC holds between 55 percent and 60 percent in each, the paper said.

Officials believe the community stakes could be worth more than 50 billion naira ($376.8 million) in the first year, the paper said. ($1=132.70 Naira) (Reporting by Simon Jessop; editing by Steve Orlofsky)