Renewal of OML 130 Block Agreements in Nigeria
The Nigerian National Petroleum Company (NNPC), a state-owned oil company in Nigeria, has recently entered into agreements for the renewal of the Oil Mining Lease 130 (OML 130) located offshore in the Niger Delta region. According to reports from Reuters and Leadership News, these renewal agreements involve partnerships with Total, China National Offshore Oil Corporation (CNOOC), and others.
The agreements comprise various contracts and addendums, including a production sharing contract (PSC) between NNPC and its contractors, CNOOC & South Atlantic Petroleum (SAPETRO) with Total Upstream Nigeria (TUPNI) as the operator. Furthermore, an additional settlement repayment agreement (SRA) addendum was reported between NNPC and its contractors CNOOC and SAPETRO, as well as a heads of agreement (HoA) amendment between NNPC, TUPNI, SAPETRO, PRIME 130, & CNOOC. The renewal also encompasses concession contracts for one petroleum prospecting licence (PPL) and three petroleum mining leases (PML), alongside lease and license instruments between NNPC, TUPNI, SAPETRO, PRIME 130, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The signing of these agreements is aimed at paving the way for the final investment decision on the Preowei project, which is expected to cost around $2.1bn for development. As reported by Reuters, NNPC expects these agreements to facilitate the conversion of the oil mining lease into a petroleum mining licence.
The OML 130 block is situated at water depths of over 1000m and encompasses the producing Akpo and ultra-deepwater Egina fields, as well as the Preowei discovery. The Akpo field commenced operations in 2009, while the Egina field began production in 2018. Presently, the OML 130 has a production capacity of 170,000 barrels per day.
The signing of these renewals demonstrates the commitment of NNPC to maintain and develop its oil and gas assets in the offshore Niger Delta region. These developments will not only contribute to the growth of the oil and gas sector in Nigeria but also have a positive impact on the country’s economy.
In conclusion, the renewal of the OML 130 block agreements is a significant milestone for NNPC and its partners, and it is expected to enhance the development and production of oil and gas resources in Nigeria. The signing of these agreements is a testament to the ongoing efforts to sustain and expand the country’s energy sector and build stronger partnerships with international oil companies.
