The corporation also urged investors to take interest in
opportunities in its frontier basins, gas fields, pipeline networks as well as
its integrated power supply assets.
The NNPC listed its PSC partners as 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 five deals signed were the dispute settlement agreement,
settlement agreement, historical gas agreement, escrow agreement and the
renewed PSC agreement.
A statement by the Group General Manager, Group Public
Affairs Division of the NNPC, Dr. Kennie Obateru, quoted the Group Managing
Director of the Corporation, Mallam Mele Kyari, as saying that over $10 billion
of investment would be unlocked as a result of the agreements.
He said the deal signalled the end of the long-standing
disputes over the interpretation of the fiscal terms of the PSC and the
emplacement of a clear and fair framework for the development of the huge
deepwater assets in Nigeria.
Kyari stated that the move was an indication of “a renewed
confidence between NNPC and her partners; between the government and the
investing communities which include NNPC”.
“It produces value for all of us by providing a clear line
of sight for investment in the Bonga bloc of around $10 billion,” he added.
He said the deal would yield over $780 million in immediate
revenues to the federal government while it would also free the parties from
over $9 billion in contingent liabilities.
“Ultimately, these agreements will engender growth in our
country where investment will come in for other assets, not just in the
deepwater, but even for new investors. It is an opportunity for them to see
that this country is ready for business,” he added.
Kyari lauded President Muhammadu Buhari, the Minister of
State for Petroleum Resources, Chief Timpre Sylva, and the NNPC board of
directors for enabling the corporation to achieve the feat.
In his remarks, the Country Chair of Shell Companies in
Nigeria, Mr. Osagie Osunbor, said the OML 118 renewal agreement would remain a
watershed in the history of deepwater investments in Nigeria.
He added that the giant stride will further bolster
investors’ confidence in the country.
Also, the Managing Director of SNEPCo, Mr. Bayo Ojulari,
stated that the agreements marked the end of a 12-year dispute that had marred
business relationship and affected trust and investment.
“Today, we have signed agreements that define the future of
deepwater for Nigeria. This is the first deepwater block that was developed in
Nigeria and it is also the first one that we are resolving all the disputes
that will lay the foundation for the resolution of other PSCs,” he stated.
Managing Directors of Total, Mike Sangster; ExxonMobil’s,
Richard Laing and NAOC’s, Roberto Danielle, praised the NNPC for providing
leadership, which engendered the resolution of the disputes.
They assured the corporation that the agreements would
attract more investments to the industry
Corporation Seeks Upstream Investments
Meanwhile, the NNPC yesterday urged investors to take
advantage of investment opportunities in Nigeria’s frontier basins, gas fields,
pipeline networks as well as its integrated power supply assets.
Speaking at this year’s virtual Nigerian Oil & Gas
Opportunity Fair (NOGOF 2021) themed ‘’Leveraging Opportunities and Synergies
for Post Pandemic Recovery of the Nigerian Oil & Gas Industry,” Kyari
stated that having been ravaged and disrupted by the impact of the COVID-19
pandemic, the industry was in dire need of fresh investments.
Kyari said at the two-day event organised by Nigerian
Content Development Monitor Board (NCDMB), that there was the need to foster
institutional collaborations, maximise participation of Nigerians in oil and
gas activities, and link oil and gas sector to other areas of the economy.
Kyari spoke even as the NCDMB Executive Secretary, Mr. Simbi
Wabote, said the board was eyeing at least $3.7 billion in investments and
commercial partnership and had committed a total of $332 million under its
commercial ventures partnership programme to achieve the goal.
According to the NNPC boss, the oil and gas industry in
Nigeria is replete with opportunities from the upstream, midstream to the
downstream and even to the services sectors.
He stated that opportunities abound for potential investors
to come into the sector, adding that synergies could be created between the
NNPC and potential investors, towards assured value creation and a guaranteed
fair share of Return on Investment (RoI).
Wabote, in his remarks, listed some of the partnerships
undertaken by the board to include the 5,000 barrels per day Waltersmith
modular refinery in Ibigwe, Imo State, NEDO gas processing company in Kwale,
Delta State and a 300mmscfd Kwale gas gathering hub.
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