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NNPC settles OML 118 disputes, unlocks $10 billion in deepwater investment

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  • By Rig Lynx
  • May 31, 2021
  • Category : Archives
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The Nigerian National Petroleum Corporation (NNPC) has signed an agreement with the partners in the offshore OML 118 area, aimed at bringing more investment into the country’s deep offshore arena. Partners in OML 118 include operator Shell, along with other supermajors Total, Agip and Esso.

 

In a social media post, NNPC stated the new agreement “marks a watershed in the administration of deepwater operations in Nigeria. Over $10 billion of investment will be unlocked as a result of this development.”

 

There had been ongoing disputes on the license which the new agreements have resolved. “By these Agreements, NNPC group and the contractors (OML 118 partners) have settled the long-standing disputes that have bedeviled the PSC administration and entered into a new PSC with clearly aligned terms. This renewed relationship will create the stability required for investments in the deepwater terrain. It will also facilitate the $16 billion Bonga South West Aparo Project investment by SNEPCO,” NNPC’s statement offered.

 

The Bonga field was first discovered in 1993 and is located 120 km southwest of the Niger Delta in water depths of over 1,000 meters.

 

Source: Petroleum Africa

Photo: NNPC

 

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