NNPC, NAOC, OANDO Execute Novation Agreement for 4 OMLs to Grow Nation’s Revenue, Increase Reserves

… As Corporation, Nigeria Agip Exploration Firm Up ABO OMLs Head of Terms Agreement”
To expeditiously grow the Federal Government’s revenue and in turn boost the nation’s reserve base, the Nigerian National Petroleum Corporation (NNPC), Nigeria Agip Oil Company (NAOC) and Oando, have executed a novation agreement for Oil Mining Leases (OMLs) 60,61, 62 and 63.
The Group Managing Director of the NNPC, Mallam Mele Kyari, speaking on the significance of the novation agreement at the NNPC Towers, Wednesday in Abuja, said the agreement marked a significant milestone, with the promise to bring about an amicable end to all litigations, and arbitrations that have over the years inhibited the growth of those assets.
A release by NNPC Agt. Group General Manager, Group Public Affairs Division, Mr. Samson Makoji, said Mallam Kyari explained 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.
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”.
Samson Makoji
Acting Group General Manager
Group Public Affairs Division,
NNPC, Abuja.
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