TheCable

The Nigerian National Petroleum Company (NNPC) Limited says it has renewed its production sharing contract (PSC) with Nigeria Agip Exploration (NAE).

NNPC announced the development on Tuesday via its Twitter page, stating that the latest renewal was for oil mining lease (OML) 125.

NNPC said Mele Kyari, its group chief executive officer (GCEO), and Chacon Oswaldo, director, finance, Eni, signed the agreements on behalf of both companies.

According to the national oil company, the signing also marked the resolution of its lingering disputes with NAE.

“In continuation of last week’s dispute resolution/lease renewals between NNPC Limited and its production sharing contract (PSC) contractors, the company has signed the last of the 1993 dispute settlement agreements & renewed PSC for OML 125 with Nigerian Agip Exploration,” NNPC tweeted. 

“Group Chief Executive Officer, Mallam Mele Kyari signed the agreements on behalf of NNPC Limited, while Mr. Chacon Oswaldo signed on behalf of NAE.”

PSCs are contracts between exploration and production (E&P) companies and the government concerning how much of the resource extracted from the country each will receive.

NNPC Limited had renewed oil production sharing contracts with its partners for OML 125, 128, 130,132, 133, and 138 — after nearly three decades.

The renewals were in line with the provisions of section 311 of the Petroleum Industry Act (PIA).

The company had said the recent negotiations would put to rest the 1993 protracted dispute between NNPC Limited and the contractor parties.

“The PSCs and their leases, except OML 130, will run for another 20 years term under pre-PIA laws, while OML 130 is to be renewed under PIA terms,” the state oil firm said.