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The Nigerian National Petroleum Company Limited (NNPCL) and its partners yesterday signed renewed Production Sharing Contracts (PSCs), in a deal that could potentially boost Nigeria’s oil production substantially.
Aside from the PSCs, other subcontracts at the event, which took place at the NNPCL headquarters in Abuja, included Dispute Settlement Agreements (DSAs), Settlement Repayment Agreement (SRAs), as well as Escrow Agreements.
Parties to the contracts, which saw the Group Chief Executive Officer, Mallam Mele Kyari, sign on behalf of the NNPCL, were: Total Energy, Chevron, Shell Nigeria Exploration and Production Company (SNEPCO), Esso Exploration and Production Nigeria Limited, China’s Sinopec, Equinor, Sapetro, among others.
The hitherto disputed five Oil Mining Leases (OMLs) which had lingered for almost 30 years, included 128, 130, 132, 133, and 138. But with the resolution of all pending issues, the assets are expected to unlock over $500 billion in revenue for the country, attract Direct Foreign Investment of around $4 billion and put an end to a continent liability of about $9 billion.
At the official signing ceremony, Kyari underscored the enormous losses, both in cash and goodwill that had ensued in the course of the dispute, but noted that with the matters finally settled, there would now be a boost in production.
Ondomind
