The Nigerian National Petroleum Corporation (NNPC) yesterday executed a joint agreement with its Production Sharing Contract (PSC) partners to renew the deal for another twenty years.
Kennie Obateru, group general manager, Group Public Affairs Division of the NNPC, in a statement, listed the Production Sharing Contract (PSC) partners to include Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE).
He disclosed that five deals – dispute settlement agreement; settlement agreement; historical gas agreement; escrow agreement and the renewed PSC agreement were executed.
He also quoted the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, as saying that over $10 billion of investment would be unlocked as a result of the agreements and urged investors to take interest in opportunities in its frontier basins, gas fields, pipeline networks as well as its integrated power supply assets.
These agreements signals the end of long-standing disputes over the interpretation of the fiscal terms of the production-sharing contracts and sets a clear and fair framework for development of the huge deep-water assets in Nigeria, the statement said.
The OML 118 partnership, which is the first of such development in the deep-water arrangement in the Nigerian oil sector, will unlock about 2billion barrels of oil for Nigeria, while prospects show that the oil field has a gas deposit of about one trillion standard cubic feet (TCF), beside the 2billion oil exploration potential.
Mr. Osagie Osunbor, Country Chair of Shell Companies in Nigeria remarked that the OML 118 renewal agreement would remain a watershed in the history of deep-water investments in Nigeria. He added that the giant stride will further bolster investors’ confidence in the country.
The Managing Directors of Total, Mike Sangster; ExxonMobil’s, Richard Laing and NAOC’s, Roberto Danielle, praised the NNPC for providing leadership, which engendered the resolution of the disputes, assuring that the agreements would attract more investments to the industry.