Oil and Gas

NNPC, NAOC, OANDO sign agreement to boost oil revenue

By Segun Fayose

The Nigerian National Petroleum Corporation (NNPC), Nigeria Agip Oil Company (NAOC) and Oando, have executed a tripartite signed an agreement for Oil Mining Leases (OMLs) 60, 61, 62 and 63 with the objective to increase the revenue and oil reserve of the country.

According to the Group Managing Director of the NNPC, Mallam Mele Kyari, the significance of the milestone agreement signed at the NNPC Towers in Abuja, Wednesday is to bring about an amicable end to all litigations, and arbitrations that have over the years inhibited the growth of those assets.

Mallam Kyari, who was quoted in a release by the NNPC Agt. Group General Manager, Group Public Affairs Division, Mr. Samson Makoji, said that the agreement signified the transfer of NNPC interest in those assets to the Nigerian Petroleum Development Company (NPDC) which would open up the company to contributing to cash calls and further progress the growth of the partnership.

“The Federation divested its interest in the NNPC, NAOC joint ventures and that means we have transferred those interest to the Nigerian Petroleum Development Company (NPDC) in order to grow NPDC, to become a medium size Upstream company that the federation and the NNPC would be proud of,” Mallam Kyari informed.

Group MD of NNPC, Mallam Mele Kyari, MD/CEO of NAOC/NAE, Lorenzo Fiorelli and COO Oando, Omamofe Boyo signing the agreement

He added that the novation agreement offered NNPC partners the comfort that the NPDC would deliver on its responsibilities, stressing that the agreement would open a new chapter of business for NPDC and the entire partnership and create a new frontier for revenues for the companies as well as the nation at large. 

Mallam Kyari said the agreement would create more activities in the Upstream, in addition to the concomitant employment opportunities therefrom for the people, saying the partnership held a lot of promise for all.

He said: “This is the beginning of greater things to come in the Oil and Gas Industry. We are ready to make sure that NPDC delivers on her mandate of exploration as this is a milestone in our quest to grow reserves”. 

Similarly, the NNPC and the Nigeria Agip Exploration Limited (NAE) signed the Abo OML 125 Head of Terms Agreement which marks a significant advancement towards resolving issues which have lingered in most deep offshore Production Sharing Contracts.

With the development, the parties can now look forward to the renewal of OML 125 and further investment in exploring and developing Abo field resources.

In his response, the Managing Director of NAOC, Lorenzo Fiorillo, said they were glad to partner with the NNPC in its drive to increase crude oil production in Nigeria.

“ENI through its Affiliate NAOC is on record as the first company to produce from the deep offshore in Nigeria”. #

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Olusegun Fayose

Olusegun Sunday Fayose, founder of RovingNaija.com is a Marketing Communication executive with experience in Corporate Communication, Public Relations, Branding and Advertising. He is also a seasoned media professional with roots in print, broadcast and online journalism. Segun, who last managed the Group Corporate Communication function of MultiChoice Nigeria, is upbeat that through responsible, fair, accurate and courageous reporting; and the support of readers, followers and patrons, Nigeria takes a step closer to a regime of accountability, fairness and equity in governance.

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