ExxonMobil Nigeria has expressed commitment to maintaining a significant deepwater presence in the country over the next 20 years to unlock potential value from the renewal of its Oil Mining Leases (OMLs).
The Execute Director and General Counsel, ExxonMobil Nigeria, Adesua Dozie, disclosed this yesterday in an interview with the News Agency of Nigeria (NAN) in Abuja.
Dozie described the renewed agreements as a fantastic and exciting deal, after many years of dispute, adding that it would bring additional investments and spur economic growth.
She expressed satisfaction over the implementation of PIA 2021, which recognised the potential and future of the deepwater sector in Nigeria.
“As for my company, what this means is a significant deepwater presence for our company in Nigeria for the next 20 years,” she said.
The Nigerian National Petroleum Company (NNPC) Limited and its partners in the OMLs, on Friday executed fully termed agreements for renegotiated Production Sharing Contracts (PSCs).
The Petroleum Industry Act (PIA) 2021 gave the NNPC Ltd. the legal backing to renegotiate all its existing PSCs within one year in conformity with the provisions of the new law.
The PIA, in Section 311(2) stipulates that new PSCs agreements under new Heads of Terms should be signed between NNPC Ltd. as Concessionaire and her Contractor Parties within one year of signing the PIA into law.
This provision paved the way for the resolution of lingering disputes, which created investment uncertainty and stifled new investments in the nation’s deep offshore assets.
The renewed PSCs would generate 10 billion barrels of oil cumulatively, unlock opportunities within the Nigeria upstream sector, enhance revenue, inflow of Foreign Direct Investments and expand access to affordable energy and job creation. (NAN)
As for my company, what this means is a significant deepwater presence for our company in Nigeria for the next 20 years.
