The Nigerian National Petroleum Company (NNPC) Limited announced that it has successfully signed agreements for the renewal of the oil mining lease (OML) 13 production sharing contracts (PSC) with five prominent energy firms.
These agreements mark a significant milestone for the national oil company, aligning with the provisions of the Petroleum Industry Act of 2021.
China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum (SAPETRO), Total Upstream Nigeria Limited (TUPNI), Prime 130, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are the five companies involved in these renewed contracts.
The signing ceremony took place in Abuja on Thursday and was presided over by Gabriel Aduda, the permanent secretary of the Ministry of Petroleum Resources.
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According to a statement released by NNPC, the agreements include a PSC between the national oil company and its contractors, CNOOC and SAPETRO, with TUPNI acting as the operator.
Additionally, a head of agreement (HoA) amendment has been made between NNPC, TUPNI, SAPETRO, Prime 130, and CNOOC.
A settlement repayment agreement addendum has also been included between NNPC and its contractors, CNOOC and SAPETRO.
In addition to these contracts, concession contracts have been signed for one petroleum prospecting license (PPL) and three petroleum mining leases (PMLs).
Furthermore, lease and license instruments have been agreed upon between NNPC, TUPNI, SAPETRO, Prime 130, and NUPRC.
This remarkable achievement by NNPC sets the stage for the final investment decision on the Preowei project, estimated to be worth around $2.1 billion.
Following this, the TUPNI-led consortium, together with the OML 130 partners, will proceed with the Egina South projects.
These ventures aim to introduce additional volumes to the highly acclaimed Egina Floating Production, Storage, and Offloading (FPSO) vessel.
OML 130, situated approximately 130 kilometers offshore the Niger Delta, is a deepwater block characterized by water depths exceeding 1000 meters. It encompasses the productive Akpo and Egina fields and the Preowei discovery.
Initially designated as oil prospecting license (OPL) 246, this asset was awarded to SAPETRO in 1998.
Subsequently, after the commercial discovery of oil in Akpo and Egina in 2000 and 2003 respectively, it was converted to OML 130 in February 2005.
The Akpo field commenced production in 2009, while the ultra-deepwater Egina field, approved in 2013, started operations in 2018.