NNPC Ltd, OML 130 Partners Finalise Lease Renewal Process

In order to increase the value of the asset for stakeholders, the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Oil Mining Lease (OML) 130 Partners have completed the lease renewal procedure for OML 130.

According to the terms of the Petroleum Industry Act (PIA) 2021, The NNPC Limited stated on Thursday that the OML 130 Production Sharing Contract (PSC) had been renewed and that the area had been changed into a Petroleum Mining Lease (PML).

Five agreements were signed at the ceremony, which was presiding over by Amb. Gabriel Aduda, Permanent Secretary, Ministry of Petroleum Resources.

The management of NNPC Ltd highlighted the contracts in a statement, among them the PSC between NNPC Ltd and its contractors, China National Offshore Oil Corporation (CNOOC) and South Atlantic Petroleum (SAPETRO), with operator Total Upstream Nigeria (TUPNI).

A Heads of Agreement (HoA) Amendment involving NNPC Ltd., TUPNI, SAPETRO, PRIME 130, and CNOOC as well as a Settlement Repayment Agreement (SRA) Addendum between NNPC and its Contractors (CNOOC and SAPETRO) are included in the agreements.

NNPC, TUPNI, SAPETRO, PRIME 130, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are parties to lease and licence instruments as well as concession contracts for one petroleum prospecting licence (PPL) and three PMLs.

The NNPC Ltd said that the accomplishment will clear the road for the Preowei's US$2.1 billion Final Investment Decision (FID).

The best-in-class Egina Floating, Production, Storage and Offloading (FPSO) Vessel would then receive additional volumes through Egina South projects planned by TUPNI and the OML 130 partners, the business added.

The NNPC Ltd Group Chief Executive Officer (GCEO), Malam Mele Kyari, the Chief Upstream Investment Officer (CUIO), Bala Wunti, Chief Strategy and Sustainability Officer, and Oritsemeyiwa Eyesan were among the stakeholders present at the signing event.

The NUPRC Chief Executive, Gbenga Komolafe, as well as the Managing Directors of TotalEnergies in Nigeria and CNOOC, Mike Sangstar and Li Chunsheng, were present at the ceremony.

OML 130 is 130 km offshore in the deep water Niger Delta. The building houses the Preowei finding as well as the active Akpo and Egina fields.

Over 646 million barrels of condensate have been produced by the Akpo field through the Akpo FPSO to date, while over 233 million barrels of crude oil have been produced by the Egina field through the Egina FPSO.

With an exceptional track record of non-zero gas flare, roughly 1.6 trillion cubic feet (TcF) of gas have already been commercialised from both fields.

The largest producer in TotalEnergies' Nigeria portfolio and one of the most productive properties in Nigeria is OML 130, which cranks out 170,000 barrels per day at the moment.