The Nigeria National Petroleum Company Limited, and its contractors to the Production Sharing Contracts, on Friday, signed the Agreements on renewed PSC, in line with the new provisions of the Petroleum Industry Act (PIA) Section 311.
The finalizing of the agreements has put to rest the protracted dispute between the NNPC Ltd and the Contractor Parties in Oil Mining Leases (OMLs), 128, 130, 132 and 133, as well as 138 (PSCs).
Speaking at the event held at the NNPC Limited Towers, Abuja, the Group Chief Executive Officer, NNPC Limited, Mele Kyari said that the reviewed PSC agreements brings to an end all issues issues facing the sector especially as regards arbitrations and litigations which comes as a result of unclear agreements binding businesses in the sector.
He said “We all know that in businesses, disputes are inevitable, but they always come when there is no clarity of the agreements that businesses go into. And very often, it is complicated by laws that may not carry the necessary clarity for businesses to go into contract. That’s how we landed in the 1993 PSA debacle since 2007.
“The PIA recognized all those terms, the fiscal terms are clearly re-engineered to make sure that these conditions are met and also allowed us to close our disputes in an amicable manner so that we stop all litigations, so that there are terms and conditions that will enable us to move forward in our relationship.
“And the real impact of this is that we will have much better relationship with our partners, we will have clearer agreements, with new production sharing contracts that must have recognized all the issues that we have with the 1993 PSC and those issues are there, all ambiguities have been reduced to minimim, as you all know, we did this together.
He hailed President Mohammadu Buhari for his contribution to ensure that the agreements were drafted in order to better the sector and increase productivity.
“I understand very clearly that it would not have been possible except you have some courage of leadership and all of us must give this credit to President Muhammadu Buhari who agreed that we must resolve this in the most amicable manner, in a manner that the country benefits and also in a way that investors recover their cost and make the competitive benefits that they must have from their investments.
The Agreements signed includes; OML 138 which includes, The Production Sharing contract, Dispute Settlement Agreement and the Escrow agreement. The partners involved are NNPC, Chevron, Total, Esso E&P Nigeria (Offshore East) Ltd, Nexen Petroleum Nig. Ltd,
OML 133 which includes the Production Sharing Contract, Dispute Settlement Agreement, Escrow Agreement and Settlement Agreement. The partners involved are NNPC, Esso E&P Nigeria (Offshore East) Ltd, Shell Nigeria.
Others are; OML 128 (Agbami-Ekoli) which includes the Production Sharing Contract, Dispute Settlement Agreement, Settlement Agreement and Escrow Agreement. The Partners involved are NNPC, Exquinox Nigeria and Texaco Nigeria.
OML 132 (Biswap) which has just the Production Sharing Contract and should run for 20 years. The Partners involved are NNPC and Texaco Nigeria.
OML 130 (Apo and Ejina fields) which includes the Production Sharing Contract, Settlement Repayment Agreement, Settlement Agreement. The PIA terms are also included in this agreement. The Partners are NNPC, South Atlantic Petroleum, Standard Chattered Bank, and Sinok Exploration and Production Limited
NNPC Group CEO, Mele Kyari launches Crude Oil Theft Monitoring Application
Also at the event, the Group Managing Director of Nigeria National Petroleum Corporation, Mele Kyari launched the Crude Oil Theft Monitoring Application. The application comes as a solution to the issues of vandalism and oil theft facing the sector and hampering productivity.
Launching the Application, Kyari said “Issues around vandalism are very difficult to deal with, we have endulged our partners, government agencies and the host communities. We still have vandals and illegal refineries and we will continue to respond to it. Arrests have been made by the Nigerian Navy I commend the Nigerian security operatives for their efforts so far.
He said that the application has been set up in a way that people can report cases of oil theft and illegal Oil mining and refineries. He also said the NNPC will continue to collaborate with the Security Operatives, the International community and the Host community to see that the cases of Oil Theft are extinguished.
Kyari advised buyers of Cruse Oil in the International Market to Validate the Cruse Oil they buy and be sure of their sources before buying as they are all numbered. He announced a reward for anyone who reports these fraudulent elements as well as an assurance of confidentiality of identity.
The event featured a test-run of the Application, as well as the website, stopcrudeoiltheft.com. Participants were taught how to use it to report suspected illegal activities, how it works in general, as well as validate the Crude Oil they buy.
Dignitaries at the event includes; Chairman Board of Directors, NNPC Senator Magery Okadigbo, Chairman FIRS, Mohammed Nami, Chief Executive Officer, National Union of Petroleum Regulatory Commission, Gbenga Komolafe, Chairman and The Nigerian Midstream and Downstream Petroleum Regulatory Authority, Faruk Ahmed.