NNPC, partners resolve OML 130 dispute

The Nigerian National Petroleum Corporation (NNPC) has agreed with its partners to settle all outstanding issues surrounding the development of Oil Mining Lease (OML), 130.

Dr Kennie Obateru, spokesman for the corporation disclosed in a statement on Saturday in Abuja.

The partners are China National Offshore Oil Company (CNOOC), and South Atlantic Petroleum (SAPETROL).

Obateru said that the move was in line with the effort to meet the target of revving up production to three million barrels per day.

He said it would also unlock gas revenues to the tune of about 225 million dollars in the short term and 510 million dollars in the long run for the country.

He quoted the NNPC Group Managing Director, Malam Mele Kyari, as saying at the signing of Head of Terms (HoT), that agreement with the partners was part of the Corporation’s Production Sharing Contract (PSC), Dispute Resolution and Renewal Strategy of 2017.

Kyari said that the resolution was aimed at securing out-of-court settlement of all disputes around the 1993 Production Sharing Contracts (PSC) and agreeing on terms for their renewal.

He explained that the dispute arose from recognition of the certain cost and discordant interpretation of the fiscal terms of the PSC by NNPC and the contractor parties.

“With the resolution and signing of HoT, apart from unlocking over 225 million dollars of gas revenues, it will also enable settlement of renewal fees.

“It will create a conducive environment to further development of OML 130 with associated benefits to the federation.

“We are doing this with every other partner in the PSC dispute, we believe that we can close this engagement and conversation with all of you.

“The HoT will clearly enable us to proceed and have a full settlement, and this will benefit all of us,” Kyari said.

He commended CNOOC and SAPETROL for their understanding while expressing delight that the HoT would facilitate the conclusion of all renewal issues.

Also, Managing Director of CNOOC, Mr Xie Vincent Wensheng, said the agreement had opened a new chapter in his company’s relationship with NNPC, stressing that it had provided a win-win situation for all parties.

On his part, Managing Director of SAPETROL, Mr Toyin Adenuga, said the resolution of the dispute was a very important step toward further development of OML 130 and other new fields as the terms were now clearly spelt out.

The execution of the HoT signals the resolution of a tax dispute that arose from the 2.3 billion dollars acquisition of a 45 per cent stake in OML 130 by CNNOC from SAPETRO in 2006.

The OML 130 consists of the Akpo and Egina Fields which have been producing since 2009 and 2018 respectively.

It is operated by Total Upstream Nigeria Ltd which holds 24 per cent stake, while Petrobras Oil and Gas BV and SAPETRO hold 16 per cent and 15 per cent stakes respectively. (NAN)

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Social Investment Fund: Reps Summon Adeosun, Ahmed, Farouq, Others Over N1.7trn Allocation
FORMER Minister of Finance, Mrs Kemi Adeosun and the incumbent Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, are expected to appear before the House of Representatives over N1.7 trillion appropriated for the implementation of National Social Investment Programme (NSIP) from 2016 to September 2019. Also expected to appear is the Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq; incumbent and former permanent secretaries, desk officers involved in the implementation of the programmes in both ministries as well as the National Social Investment Office…

PTF Extends Phase Two Eased Lockdown By Four Weeks
The Presidential Task Force on COVID-19 has extended the current phase two eased lockdown by another four weeks. The phase started on June 1, 2020. The extension followed the approval of recommendations made by the PTF to President Muhammadu Buhari. The Chairman of the task force and Secretary to Federal Government of the Federation (SGF), Mr Boss Mustapha, stated this at Thursday’s press briefing in Abuja. saying that there are however some amendments to the phase…

SEE THE APPOINTMENT LETTER: Bauchi Governor Gets SA On Unmarried Women Affairs
In a resolve to monitor and regulate the activities of single ladies in the state, Bauchi State Governor, Senator Bala Mohammed Abdulkadir has appointed Balaraba Ibrahim as his Special Assistant (SA) on Unmarried Women Affairs. The appointment of the SA was contained in a letter signed by the Secretary to the State Government, Mohammed Sabiu Baba copies of which was made available to journalists in Bauchi on Thursday…

Industrial Unrest Looms In University System, NASU, SSANU Warn
The varsity workers, under the auspices of the Joint Action Committee (JAC) of the Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union of Universities and other Associated Institutions (NASU), said on Thursday that they would immediately commence a nationwide strike as soon as the university system reopens after the COVID-19 lockdown…