NNPC, NAOC, OANDO Execute Novation Pact for 4 OMLs
…As Agip, NNPC Firm Up ABO OMLs Head of Terms Agreement
Oando and Agip Oil Company have executed a novation agreement with the Nigerian National Petroleum Corporation (NNPC) for Oil Mining Leases (OMLs) 60, 61, 62 and 63, in what officials said will expeditiously grow Nigeria’s revenue, and boost its reserve base.
The novation agreement, observers say, marks 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 the listed assets.
Primarily, the agreement signified the transfer of NNPC interest in the Oil Mining Leases (OMLs) 60, 61, 62 and 63 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.
Speaking at the occasion, the group managing director of the NNPC, Mallam Melee Kyari, reiterated that Nigeria has divested its interest in the NNPC, NAOC joint ventures. “This means we have transferred those interests 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 said
The novation agreement is expected to offer the NNPC partners the assurances that the NPDC would deliver on its responsibilities. Kyari said it would also 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.
He pointed out that the agreement would create more activities in the Upstream, in addition to the concomitant employment opportunities therefrom for the people. Indeed, adding that the partnership held a lot of promise for all. “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,” Kyari said
In a similar note, the NNPC and the Nigeria Agip Exploration Limited (NAE) have 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. Confirming the development, 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 the first company to produce from the deep offshore in Nigeria.