NNPC, contractors ink deal to unlock $10bn investments in OML 118

The Nigerian National Petroleum Corporation (NNPC) on Tuesday recorded a major investment breakthrough as it signed a contract for the execution of OML 118 (Bonga) agreements with its contractors; Shell Nigeria, Exxon Mobil Nigeria, Total Nigeria and Nigerian Agip Oil Company (NAOC).

According to the national oil company, the development marks a watershed in the administration of deepwater operations in Nigeria.

“Over $10 billion of investment will be unlocked as a result of this development.

“By these agreements, NNPC and the contractors have settled the long-standing disputes that have bedevilled the Production Sharing Contract (PSC) administration and entered into a new PSC with clearly aligned terms”, it said.

The Group Managing Director of NNPC, Mr Mele Kyari noted that the renewed relationship will create the stability required for investments in the deepwater terrain. It will also facilitate the $16 billion Bonga South West Aparo Project investment by SNEPCO.