NNPC, partners to earn $760m from gas supply

The Nigerian National Petroleum Corporation (NNPC) and its partners in the Oil Mining Lease (OML 130) Production Sharing Agreements (PSA) and Production Sharing Contract (PSC) are set to earn over $760 million from fresh Gas Supply Purchase Agreements (GSPAs) and Gas Entitlement Agreement (GEA).

The agreements, which are part of the Corporation’s gas commercialization programme, involve Total Exploration and Production Nigeria (TEPNG), China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum Nigeria Limited (SAPETRO) and Prime 130 Limited, the NNPC said in a statement Friday night.

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“We now have a clear line of sight around gas revenue of up to $250 million, and also another $510 million that is applicable to the rest of us,” Mallam Kyari said.

In the recently passed Petroleum Industry Bill, the GMD assured the parties that the fiscal terms proposed in the oil reform legislation remain some of the most attractive in the global oil and gas industry, noting that investors have no cause to worry.

Managing Director of TEPNG, Mr. Mike Sangster, expressed delight at the signing of the agreements, adding that the parties were committed to the terms of the agreements.

OML 130 is a deepwater block located 130 kilometre offshore Niger Delta at water depths of well over 1,000 metres. The block contains the producing Akpo and Egina fields and Preowei discovery.