Nigeria’s state-owned oil company, Nigerian National Petroleum Company (NNPC), has signed new agreements for the renewal of the Oil Mining Lease 130 (OML 130) block. The agreements were made with Total, China National Offshore Oil Corporation (CNOOC), and others. This is big news for the oil industry in Nigeria!
The agreements include a production sharing contract (PSC) between NNPC and its contractors, CNOOC and South Atlantic Petroleum (SAPETRO), with Total Upstream Nigeria (TUPNI) as the operator. There is also a settlement repayment agreement (SRA) addendum between NNPC and its contractors CNOOC and SAPETRO. In addition, there is a heads of agreement (HoA) amendment between NNPC, TUPNI, SAPETRO, PRIME 130, and CNOOC. The agreements also cover concession contracts for one petroleum prospecting license (PPL) and three petroleum mining leases (PML), as well as lease and license instruments between NNPC, TUPNI, SAPETRO, PRIME 130, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
These agreements are a significant step towards finalizing the Preowei project, which is estimated to cost $2.1 billion for development. The NNPC is optimistic that the agreements will lead to the conversion of the oil mining lease into a petroleum mining license. This is great news for the future of oil exploration in Nigeria!
The OML 130 block is located offshore in the Niger Delta and consists of the Akpo and Egina fields, as well as the Preowei discovery. The Akpo field has been in production since 2009, while the Egina field started production in 2018. Currently, the OML 130 block has a production capacity of 170,000 barrels per day.
This is a major milestone for NNPC and its partners. The renewal of the OML 130 block agreements will not only ensure continued oil production but also pave the way for future development projects. It’s an exciting time for the oil industry in Nigeria!
Stay tuned for more updates on the progress of the Preowei project and other exciting developments in the Nigerian oil sector. The future looks bright for Nigeria’s oil industry!