Nigeria’s NNPC sets agreements with Total, CNOOC on deepwater oil block
Nigeria’s state-owned oil company NNPC Ltd said on Thursday it had renewed a production sharing contract with Total, China National Offshore Oil Corp and others, a major step to resolving disputes on a deepwater oil block in the Niger Delta.
Oil Mining Lease 130 is located offshore Niger Delta at water depths of over 1000 meters. The block contains the producing Akpo and Egina fields and the Preowei discovery.
NNPC said in a statement that the agreements will pave the way “to firm up final investment decision on the Preowei amounting to USD$ 2.1 billion.”
NNPC said the agreements would convert the oil mining lease into a petroleum mining licence, in line with a new law.
Nigeria has struggled with low oil production due to massive crude theft, pipeline vandalism and underinvestment. Oil majors in the country are leaving onshore operations to concentrate on deepwater projects.
NNPC Limited is a for profit oil company in Nigeria. Formerly a government-owned corporation, it was transformed from a corporation to a limited liability company in July 2022. NNPC Limited is the only entity licensed to operate in the country’s petroleum industry. It partners with foreign oil companies to exploit Nigeria’s fossil fuel resources.
History
NNPC was established on 1 April 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Petroleum and Energy Resources.
NNPC by law manages the joint venture between the Nigerian federal government and a number of foreign multinational corporations, which include Royal Dutch Shell, Agip, ExxonMobil, TotalEnergies, Chevron, and Texaco (now merged with Chevron). Through collaboration with these companies, the Nigerian government conducts petroleum exploration and production.
NNPC Limited appears is ranked seventh (7th position) on LinkedIn’s 25 best companies to work in Nigeria in 2023.
Following passage of a Petroleum Industry Act in August 2021, NNPC now operates as a commercial entity without relying on government funding and direct controls. NNPC was established as a limited liability corporation in the hopes that a private entity will find it easier to access international capital markets. The company will continue to ensure energy security in Nigeria.[
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