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By Felix Onuah
ABUJA, Nov 17 (Reuters) - Nigeria has reached a deal to pay$5.1 billion in unpaid bills to oil majors including Royal DutchShell and Exxon Mobil, the minister of statefor oil said on Thursday.
The Nigerian National Petroleum Corporation (NNPC), the OPECmember's state oil firm, has amassed a total of $6.8 billion inunpaid bills up to December 2015, so-called cash calls, that itwas obliged to pay under joint ventures with Western oil firms,with which it explores for and produces oil.
Oil minister Emmanuel Ibe Kachikwu said the agreed amount,which is $1.7 billion less than the total amount owed, would bepaid within five years, interest free.
Under the arrangement, payment will be in the form of crudeoil cargoes but only when Nigeria's production exceeds 2.2million barrels per day, Kachikwu said, which is the nation'scurrent production when all fields are operating properly.
"If for any reason we did not meet (the) threshold we willnot pay the $5.1 (billion), so that is fantastic," he said ofthe deal, which has been approved by the National EconomicCouncil, an advisory body to the government.
Kachikwu last week said Royal Dutch Shell, Exxon Mobil,Italy's ENI, Chevron and France's Total had "accepted" what hedescribed at the time as an "outline settlement".
All five of the oil majors declined to comment whenapproached by Reuters.
The petroleum ministry has for more than a year been tryingto reduce its financial obligations, which have accumulated overseveral years. Kachikwu said there is at least $2.5 billion inadditional debt that has accrued this year that it is stillworking to repay. (Writing by Alexis Akwagyiram and Libby George; Editing byAlexandra Hudson and Elaine Hardcastle)
