The Publisher of an Online Media, Swift Reporters and Energy Fellow of Abuja Chamber of Commerce and Industry Policy Center, Adewole Kehinde has praised the Group Managing Director of the Nigerian National Petroleum Corporation, Mallam Kyari, on the signing of Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
It will be recalled that on Tuesday, 25th May, 2021, the Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners – 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) – have executed agreements to renew Oil Mining Lease (OML) 118 for another 20 years.
A statement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, quoted the Group Managing Director of the Corporation, Mallam Mele Kyari, as saying that over $10bn of investment would be unlocked as a result of the agreements which signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC) and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria.
According to him, this is an indication of “a renewed confidence between NNPC and her partners; between the Government and the investing communities which include NNPC. It produces value for all of us by providing a clear line of sight for investment in the Bonga bloc of around $10billion,” Mallam Kyari stated.
It will be recalled that Kyari disclosed that the deal would yield over $780million in immediate revenues to the Federal Government while it would also free the parties from over $9billion in contingent liabilities.
Adewole noted that the agreements marked the end of a twelve years dispute that had flawed business relationship and affected trust and investment.
“The agreement is a giant stride that would further bolster investor confidence in the country, Adewole said.
The Bonga Field is an oilfield in Nigeria. It was located in License block OPL 212 off the Nigerian coast, which was renamed OML 118 in February 2000. The field covers approximately 60 km2 in an average water depth of 1,000 metres (3,300 ft). The field was discovered in 1996, with government approval for its development given in 2002.
The field began first production in November 2005. The field is worked via an FPSO vessel. The field produces both petroleum and natural gas; the petroleum is offloaded to tankers while the gas is piped back to Nigeria where it is exported via an LNG plant. The field contains approximately 6,000 mm barrels of oil.
