The Nigerian National Petroleum Company Limited and Oil Mining Lease 130 Partners have closed out the lease renewal process for OML 130 to unlock additional value from the Asset for stakeholders.
The NNPC Limited announced the renewal of the OML 130 Production Sharing Contract and conversion of the acreage to a Petroleum Mining Lease in accordance with the Petroleum Industry Act, 2021 provisions on Thursday.
During the ceremony, which was presided over by the Permanent Secretary, Ministry of Petroleum Resources, Ambassador Gabriel Aduda, five agreements were executed.
The NNPCL management in a statement listed the agreements to include the PSC between NNPCL and its Contractors, China National Offshore Oil Corporation and South Atlantic Petroleum, with Total Upstream Nigeria as the operator.
The agreements include a Heads of Agreement Amendment involving NNPCL, TUPNI, SAPETRO, PRIME 130, and CNOOC and Settlement Repayment Agreement Addendum between NNPCL and its contractors, CNOOC and SAPETRO.
Others are Concession Contracts for one Petroleum Prospecting Licence and three PML and Lease and License Instruments between NNPCL, TUPNI, SAPETRO, PRIME 130 and Nigerian Upstream Petroleum Regulatory Commission.
The NNPCL said the milestone would pave the way to firm up Final Investment Decision on the Preowei, amounting to $2.1 billion.
This will subsequently be followed by Egina South projects lined up by TUPNI and the OML 130 partners to introduce additional volumes to the best-in-class Egina Floating, Production, Storage and Offloading Vessel, the company said.
Stakeholders in attendance at the signing ceremony were the NNPCL Group Chief Executive Officer, Malam Mele Kyari; Chief Upstream Investment Officer, Bala Wuntil and Chief Strategy and Sustainability Officer, Oritsemeyiwa Eyesan.
The event also had in attendance the NUPRC Chief Executive, Gbenga Komolafe; Managing Directors of TotalEnergies in Nigeria and CNOOC, Mike Sangstar and Li Chunsheng, among others.
OML 130 is in the deep water Niger Delta, 130 kilometres offshore.
The block contains the producing Akpo and Egina fields and the Preowei discovery.
To date, the Akpo field, via the Akpo FPSO, has produced over 646 million barrels of Condensate, while the Egina field, via the Egina FPSO, has produced over 233 million barrels of Crude Oil.
So far, about 1.6 Trillion cubic feet of gas has been commercialised from both fields with an outstanding record of non-zero gas flare.
OML 130, currently producing 170,000 barrels per day, is the largest producer in TotalEnergies’ Nigeria portfolio and amongst the most prolific assets in Nigeria.