NNPC Ltd, Contractors Resolve Dispute, Renew PSC Agreements

…….Seals Pact With Oil Majors To Unlock Over $500bn Revenue For Nigeria

Nigerian National Petroleum Company Limited, on Friday, signed an agreement with its partners in Oil Mining Lease, OML 138, 133, 128, 132, and 130, respectively, to settle all outstanding fiscal issues surrounding the development of the oil assets which had lingered since 2007.

The Group Chief Executive Officer of the NNPC Limited, Mele Kyari signed the deal on behalf of the company while the Chief Executive Officer of the major oil companies signed for their respective firms.

At a signing ceremony held today at the NNPC Towers in Abuja, the parties renewed their agreements on five oil mining leases. The Group Chief Executive Officer of the NNPC Limited, Mallam Mele Kyari, said that the renewal is expected to unlock over $500bn in revenue for the country.

According to Kyari, the dispute arose from the recognition of certain costs and a discordant interpretation of the fiscal terms of the Production Sharing Contract by the NNPC and the contractor parties.

Some of the Companies are Total Energy, Chevron, Shell, Esso Exploration, Synopec, Equino, Sapetro, Sinoc.

OML 138 is an offshore oil block located 100km south of Port Harcourt, the capital of oil-rich Rivers State.

OML 133 lies in the western Niger Delta, approximately 100 kilometres offshore. The block contains three Deepwater oil fields: Erha, Erha North, and Bosi.

OML 128 is located in the central part of the Niger Delta, in water depths ranging from 1,000 to over 2,000 metres. The block contains part of the giant Agbami-Ekoli field, which came onstream in 2008.

OML 132 is located in the western Niger Delta, approximately 113 kilometres offshore.

OML 130 is located in the deepwater Niger Delta adjacent to the Nigeria Sao-Tome Joint Development Zone. The block contains the onstream Akpo gas-condensate field; Egina, which is under development; and the undeveloped Preowei field.

The event was attended by the Chairman of the NNPC Board, Margary Okadigbo, Board of Directors of the NNPC Limited, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission Gbenga Komolafe, the Chief Executive of the Nigerian Downstream and Midstream Petroleum Regulatory Authority Farouk Ahmed, the Executive Chairman of the Federal Inland Revenue Service Mohammed Nami, the Group General Manager of the National Petroleum Investment Management Services Bala Wunti, Chief Financial Officer, Umar Ajiya and other top officials in the industry.

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