Nigeria’s state oil firm on Wednesday said that it had stopped payments to Eni three months ago, according to Reuters, adding that it planned to let some of Eni’s oil licenses expire.
NNPC has plans to take over some of Eni’s licenses for itself.
In the meantime, Nigeria’s refusal to pay Eni has created some setbacks for the country, which has taken steps to overhaul its energy industry by tamping down pipeline violators along with a series of anti-corruption efforts including improving transparency in the sector.
NNPC did not say which of Eni’s asset licenses would not be renewed, nor did it specify what asset the dispute was over.
“The failure to pay cash call arrears in the last three months was deliberate and meant to ensure that the issues surrounding the agreement (are) settled,” NNPC said in a statement carried by Reuters.