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 Decades.
An announcement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, lent the Group Managing Director of the Corporation, Mallam Mele Kyari, as stating that more than $10bn of investment could be unlocked as a result of the agreements which indicated the end of the long-standing disputes over the interpretation of the financial terms of the Production Sharing Contracts (PSC) and the emplacement of some definite and fair framework for the development of this Massive deep-water assets in Nigeria.
According to him, this can be a sign of”a renewed optimism between NNPC and her partners; involving that the Government and the investing communities which include NNPC. It produces value for every one of us by offering a clear line of sight for investment in the Bonga bloc of around $10billion,” Mallam Kyari said.
He disclosed that the agreement would return $780million in immediate earnings to the federal authorities although it would also spare the parties from $9billion in contingent liabilities.
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“Ultimately, these agreements will engender growth in our country at which investment will probably come into other resources, not only from the deep-water but for new investors. It’s an opportunity for them to see that this nation is ready for business,” the GMD enthused.
He thanked President Muhammadu Buhari, the Minister of State for Petroleum Resources, Chief Timpre Sylva, and also the NNPC Board of Managers for enabling the Corporation to accomplish this laudable landmark.
Also speaking at the occasion, the nation Chair of Shell Companies in Nigeria, Mr Osagie Osunbor, stated the OML 118 renewal agreement would remain a landmark in the history of deep-water investments in Nigeria, assuring that the giant stride would further bolster investor confidence in the country.
Talking in a similar vein, the Managing Director of SNEPCo, Mr Bayo Ojulari, noted that the agreements marked the conclusion of a twelve-year dispute that had marred business relationships and affected investment and trust.
“Today, we have signed agreements that define the future of deep water for Nigeria. This is actually the very first deep-water block that was designed in Nigeria and it is also the very first one that we are resolving all the disputes that will lay the foundation for the settlement of different PSCs,” the SNEPCo helmsman said.
In their own parts, the Managing Directors of Total, Mike Sangster, Exxonmobil, Richard Laing and NAOC, Roberto Danielle, all applauded the GMD NNPC, Mallam Kyari, for providing direction which communicates the resolution of the disputes, promising that the agreements could attract more investments into the Nigerian Oil and Gas Industry.
