The Nigerian National Petroleum Company Ltd(NNPCL) has executed a new deal for the renewal of the OML 130 Production Sharing Contract, conversion of the acreage to a Petroleum Mining Lease (PML) and three other deals based on the provisions of the Petroleum Industry Act (PIA) 2021, and with the outmost aim of unlocking gas revenues of up to $ 2.1bn for Nigeria in both short and long terms.
The execution of the deal for renewal, conversion to PML and three other agreements by all the parties was witnessed by Ambassador Gabriel Aduda, Permanent Secretary Ministry of Petroleum Resources on Thursday in Abuja.
EnergyDay gathered that the deal was part of the gas commercialization programme being considered by the NNPCL which seeks to end the perennial dispute over Oil Mining Lease (OML) 130, thereby upscaling the country’s crude oil output to about 3 million barrels per day and unlock gas revenues to the tune of about $ 2.1bn in both short and long terms for the country.
The NNPCL’is executing the deals with Total Exploration and Production Nigeria (TEPNG), China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum Nigeria Limited (SAPETRO) and Prime 130 Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
According to the statement from NNPCL the suites included Production Sharing Contracts (PSC) Contract between NNPC Ltd and its Contractors, China National Offshore Oil Corporation (CNOOC) & South Atlantic Petroleum (SAPETRO) with Total Upstream Nigeria (TUPNI) as the operator; Heads of Agreement (HoA) Amendment between NNPC Ltd, TUPNI, SAPETRO, PRIME 130, & CNOOC; a Settlement Repayment Agreement (SRA) Addendum between NNPC and its Contractors (CNOOC & SAPETRO).
Others are Concession Contracts for one Petroleum Prospecting Licence (PPL) and three (3) Petroleum Mining Leases (PML) and Lease & License Instruments between NNPC, TUPNI, SAPETRO, PRIME 130 and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The national oil company further emphasised that the deals have paved the way to firm up Final Investment Decision (FID) on the Preowei amounting to $ 2.1bn, subsequently to be followed by Egina South projects lined up by TUPNI and the OML 130 partners to introduce additional volumes to the best-in-class Egina Floating, Production, Storage and Offloading (FPSO) Vessel.