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Exxon Mobil optimistic to unlock potential value in Nigeria

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Exxon Mobil Nigeria expressed its commitment to maintaining a significant Deepwater presence in Nigeria for the next 20 years.

Exxon Mobil optimistic to unlock potential value in Nigeria

Exxon Mobil optimistic to unlock potential value in Nigeria

News Agency of Nigeria reports that the Nigerian Petroleum Company Limited (NNPC Ltd) and its partners in the OMLs on Friday executed fully termed agreements for renegotiated Production Sharing Contracts (PSCs).

The renegotiations will put to rest the protracted dispute between the NNPC Ltd. and the Contractor Parties in OMLs 125, 128, 130, 132 and 133, as well as 138 PSCs.

Under this development, the ExxonMobil Nigeria renewed its OMLs 133 (Erha) and 138 (Usan) deep-water leases for a further 20-year period.

The Petroleum Industry Act (PIA) 2021 gave the NNPC Ltd. the legal backing to renegotiate all its existing PSCs in conformance to the provisions of the new Act within a one year period.

The PIA, in Section 311(2) stipulates that new PSCs agreements under new Heads of Terms should be signed between NNPC Ltd. as Concessionaire and her Contractor Parties within one year of signing the PIA into law.

This provision paved the way for the resolution of lingering disputes which created investment uncertainty and stifled new investments in the nation’s deep offshore assets.

The renewed PSCs would generate 10 billion barrels of cumulatively, unlock opportunities within the Nigeria upstream sector, enhance revenue, inflow of Foreign Direct Investments and expand access to affordable energy and job creation.

The General Counsel described the renewed agreements as fantastic and exciting deal, after many years of dispute, adding that it would bring additional investments and spur economic growth.

She expressed satisfaction over the implementation of PIA 2021 which recognised the potential and future for the deep water businesses in Nigeria.

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