OML 118: NNPC, SNEPCo, others sign 20 years deep water agreement
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.
The partners are 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 Corporation disclosed this in a statement signed by its spokesman, Dr Kennie Obateru, in Abuja on Tuesday.
He said that the five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
He quoted the Group Managing Director of the Corporation, Malam Mele Kyari, as saying that over 10 billion dollars of investment would be unlocked as a result of the agreements.
This, he said, 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 the GMD, this is an indication of “a renewed confidence between NNPC and her partners; the Government and the investing communities which include NNPC.