In a statement by the group`s chief executive, group`s public affairs division, NNPC, Dr. Kennie Obateru, chief executive of the company`s group, Mele Kyari, was quoted as saying that the deals would free up more than $10 billion in investments. Bloomberg reported that the Shell spokesman said: „Through these agreements, stakeholders will have clear and stable conditions that will incentivize the further development of the OML 118 block and open up new opportunities in Nigeria`s deep-water productive oil and gas industry.“ The Nigerian National Petroleum Corporation and its production sharing contract partners have entered into five agreements to extend the 118 oil lease for a further 20 years. The company announced the signing of the contract with Shell Nigeria, ExxonMobil Nigeria, Total Nigeria and Enis Nigerian Agip Oil Co. (NAOC). The NNPC had signed Heads of Conditions (HoT) with OML 118 PSC contractors in February 2019, which provided the business framework for the parties to resolve their disputes, create a path to a sustainable and brighter future, and a benchmark for resolving PSC disputes across the industry. The Nigerian National Petroleum Corporation (NNPC) has signed agreements with Local Shell subsidiaries Total, Exxon and Eni to extend the 118 Mining Oil Lease (OML) for a further 20 years. Total`s CHIEF Executive Officers, Mike Sangster; Exxonmobil, Richard Laing; and naoc, Roberto Danielle, said the deals would attract more investment in Nigeria`s oil and gas industry. Bayo Ojulari, managing director of SNEPCo, argues that the agreements marked the end of a twelve-year dispute that affected the business relationship and affected the trust and investment. „Today, we signed agreements that define the future of the high seas for Nigeria. This is the first deep-water block developed in Nigeria, and it is also the first where we resolve all the disputes that will lay the groundwork for the resolution of other PSCs,“ explained the SNEPCo helmsman. The national chairman of letterbox companies in Nigeria, Osagie Osunbor, said the OML 118 renewal agreement will remain a turning point in the history of offshore investment in Nigeria.
The NNPC announced the signing of the deal in a social media post on Tuesday. The aim was for the HoT to be translated into fully designated agreements, including the Dispute Settlement Agreement and a new PSC agreement for the OML 118 contractual territory. After two years, the parties were able to agree today on the planned comprehensive terms and conditions agreement, including the new SPC and the dispute settlement agreement, which reflects the main agreed terms of the HoT, which finally creates security for a desired better future. Nigerian National Petroleum Corp (NNPC) has signed an agreement with its partners on OML 118, which is home to the Bonga field. „Ultimately, these agreements will drive growth in our country, where investments are being made for other assets, not only on the high seas, but also for new investors.“ Under the terms of the agreement, NNPC and Bonga PSC will enter into five agreements that will bring Nigeria an immediate benefit of approximately $700 million. It was noted that the pact will help secure $6 billion in arbitration savings for the federal government and open up 10,000 direct and indirect employment opportunities for Nigeria. The Nigerian government will immediately capture $780 million in revenue from the signing of the agreement, „while exempting the parties from more than $9 billion in contingent liabilities,“ the statement said. The new agreement will also help rebalance fiscal conditions and take into account global competition to prioritise investments by key players. Mele Kyari, managing director of NNPC Group, said the investment of more than $10 billion would be released „as a result of the agreements that marked the end of long-standing disputes over the interpretation of tax terms of production-sharing agreements and the creation of a clear and equitable framework for the development of Nigeria`s vast deep-water facilities.“ SNEPCo`s chief executive, Mr Bayo Ojulari, said the agreements marked the end of a 12-year dispute that had affected the business relationship and affected the trust and investment. There have been ongoing disputes over the licence, which have been resolved by the new agreements. „Through these agreements, NNPC Group and the contractors (OML 118 partners) resolved the long-standing disputes that plagued the PSC`s administration and completed a new MFF with clearly agreed terms.
This renewed relationship will create the stability needed to invest in the deep seabed. It will also facilitate SNEPCO`s $16 billion investment in the Bonga South West Aparo project,“ the NNPC statement said. A total of five agreements were signed between the NNPC and OML`s 118 partners. These include a dispute settlement agreement, a settlement agreement, a landmark gas agreement, a trust agreement and a renewed production sharing agreement (MFF). The Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners – 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) – have entered into agreements to extend Oil Extraction Lease (OML) 118 for a further 20 years. In particular, the agreement settles a long-standing dispute over the Production Sharing Agreement (MFF). The agreement launches a „new PSC with clearly agreed terms,“ the NNPC said. The five agreements signed include: the Dispute Resolution Agreement, the Settlement Agreement, the Historic Gas Agreement, the Trust Agreement and the PSC`s Renewed Agreement. Nigeria`s state-owned oil company NNPC has entered into five agreements with production-sharing contract partners to renew OML 118.
OML 118 is the first major deep-sea development in Nigeria in the Niger Delta on the high seas, 75 kilometers from the coast, with the Bonga fields in the water departments above 1000 m. The fields are one of Nigeria`s most productive deep-water facilities, with nearly two billion barrels of crude oil, up to 1 TCF of gas, modest operating costs and a significant gain for investors with a substantial stake for the state. Bonga is Nigeria`s first deep-sea project, discovered in 1993. . The field also supplies gas to NLNG, another strategically important asset for NNPC and its partners. NNPC chief Mele Kyari noted that the deal has benefits beyond paving the way for new projects. Kele Kyari, NNPC`s group chief executive (GMD), said in November 2020 that the company was on the verge of resolving two controversial oil facilities in Nigeria, namely OML 118 and 125. Standard Chartered closes 50% of its Nigerian offices The new PSC will operate for 20 years. It resolves a number of disputes arising from the previous contract.
It has a production capacity of approximately 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day. The main feature of settlement conditions includes, among other things, clear conditions for block closing, gas marketing conditions, replacement of controversial tax credits with clearer investment deductions, compromises on block consolidation and cost limits, early lease extensions, ensuring fiscal stability for investors, the protection of profit-sharing schemes and the settlement of the disputed past. He added: „This is an opportunity for them to see that this country is ready for business.“ The field is about 15 km from the existing Bonga FPSO with a capacity of 225,000 barrels per day, which began production in 2005. BSWA would have a capacity of 150,000 bpd. It`s in OML 118, 132 and 140. LCCI is again concerned about the increased uncertainty. . Agreement to provide the government with immediate revenues of more than $780 million. The Bonga field was first discovered in 1993 and is located 120 km southwest of the Niger Delta at water depths of more than 1,000 meters. „Through these agreements, NNPC Group and the contractors (OML 118 partners) resolved the long-standing disputes that plagued the PSC`s administration and completed a new MFF with clearly agreed terms. The man kills a roommate, sells body parts to Pastor for Rituals in Bayelsa Shell launched the tender the day after the release of oml 118 PSC. Today`s agreement completes this process of renegotiating the contract.
Nigeria has already said that BSWA could hold 1 billion barrels of oil. SNEPCO is the operator of the BSWA project. In 2015, the company said the plan would peak at 225,000 bpd, with plans for the world`s largest FPSO. As a result, it has reduced its ambitions. Reuters reported that the NNPC said the deal marked the end of „long-standing disputes over the interpretation of tax terms of production-sharing contracts“ between partners in the region. Kyari said the PSC deal would bring the Nigerian government immediate revenues of more than $780 million. It would also exempt contingent liabilities of more than $9 billion. . „This renewed relationship will create the stability needed to invest in deep-water land.
It will also facilitate SNEPCO`s $16 billion investment in the Bonga South West Aparo project. In February 2019, SNEPCO announced the publication of a Call for Tenders (ITT) to contractors for the development of the Bonga South West Aparo (BSWA) oil field. .