Nigeria's NNPC Signs Deals with Total, CNOOC on Deepwater Oil Block

Reuters
Friday, May 26, 2023

Nigeria's state-owned oil company NNPC Ltd said on Thursday it had renewed a production sharing contract with Total, China National Offshore Oil Corp and others, a major step to resolving disputes on a deepwater oil block in the Niger Delta.

Oil Mining Lease 130 is located offshore Niger Delta at water depths of over 1000 meters. The block contains the producing Akpo and Egina fields and the Preowei discovery.

NNPC said in a statement that the agreements will pave the way "to firm up final investment decision on the Preowei  amounting to USD$ 2.1 billion."

NNPC said the agreements would convert the oil mining lease into a petroleum mining licence, in line with a new law.

Nigeria has struggled with low oil production due to massive crude theft, pipeline vandalism, and underinvestment. Oil majors in the country are leaving onshore operations to concentrate on deepwater projects.


 (Reuters - Reporting by MacDonald Dzirutwe in Lagos and Camillus Eboh in Abuja; Editing by David Gregorio)

Categories: Energy Deepwater Industry News Activity Production Africa Regulations

Related Stories

Malaysian FPSO Firm Bumi Armada Gets Hold of Indonesian Block with Two Discoveries

Egypt Awards Oil and Gas Exploration Blocks to Eni, BP, QatarEnergy, and Zarubezhneft

Rosebank Oil Field Project Approval Highly Likely This Year, Ithaca Energy's Executive Chair Says

Current News

IWS Fleet Strikes Deal to Put Off Yard Payments for Offshore Wind Service Vessels

US Plans Sharp Reduction in Offshore Oil and Gas Lease Sales

Global Underwater Hub Hosts Royal Visit from King Charles

Baker Hughes Lands Two Contracts with Vår Energi for Norwegian Offshore Work

Subscribe for OE Digital E‑News