Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners have signed 20 years renewal agreement to Unlock a $10bn investment.
Gatekeepers News reports that the Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners have executed agreements to renew Oil Mining Lease (OML) 118 for another 20 years.
PSC Partners 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).
The agreements signed include Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement, and Renewed PSC Agreement.
NNPC’s Group Managing Director, Mele Kyari on Tuesday, said over $10bn of investment would be unlocked as a result of the agreements.
Kyari stated that this will also signal the end of the long-standing disputes over the interpretation of the fiscal terms of the PSC and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria.
The NNPC Boss said this was 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,”
According to him, the deal would yield over $780million in immediate revenues to the Federal Government of Nigeria while it would also free the parties from over $9billion in contingent liabilities.
Kyari said, “Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business.”
Gatekeeper News also gathered that the GMD appreciated President Muhammadu Buhari, the Minister of State for Petroleum Resources, Timpre Sylva, and the NNPC Board of Directors for enabling the Corporation to achieve this laudable landmark.
The Country Chair of SNEPCo, Osagie Osunbor on the occasion said the OML 118 renewal agreement would remain a watershed in the history of deep-water investments in Nigeria, assuring that the giant stride would further bolster investor confidence in the country.
Similarly, the Managing Director of SNEPCo, Bayo Ojulari, stated that the agreements marked the end of twelve years dispute that had marred business relationships and affected trust and investment.
Ojulari said, “Today, we have signed agreements that define the future of deep-water for Nigeria. This is the first deep-water block that was developed in Nigeria and it is also the first one that we are resolving all the disputes that will lay the foundation for the resolution of other PSCs.”
In other news, the Managing Directors of Total, Mike Sangster; Exxonmobil, Richard Laing; and NAOC, Roberto Danielle, all applauded Kyari, for providing leadership which engendered the resolution of the disputes, assuring that the agreements would attract more investments into the Nigerian Oil and Gas Industry.
