The Nigerian Petroleum Development Company Ltd (NPDC) has signed a deal worth $876 Financing and Technical Services Agreement (FTSA) with CMES-OMS Petroleum Development Company Ltd (CDPC) for the development of Oil Mining Lease (OML) 65, a NPDC asset.
The managing director of NDPC, Mansur Sambo, and CDPC’s chairman, Capt. Idahosa Wells Okunbo, sealed the deal at a signing ceremony tagged ‘the $876 Million Financing and Technical Service Agreement (FTSA)’.
Speaking during the signing ceremony, Managing Director of NPDC, Mansur Sadiq Sambo emphasised the need to boost the nation’s crude oil reserves and daily oil production.
“The significance of this Agreement is to open up production potentials of the OML 65 from 9,000 to 40,000 barrels per day,” he said. He further stated that the deal has the potential “to explore, appraise and add reserves to base,” adding that it would help the Federal Government to “earn more than $6 billion in taxes and royalties.”
Co-signing the deal, Chairman of CPDC, Capt. (Dr) Idahosa Wells Okunbo expressed delight at the opportunity offered the company to support the production and reserves growth aspiration of the Federal Government. Capt. Okunbo assured on CPDC’s competence and adoption of efficient technologies in meeting the targets set before it.
On local content, he guaranteed that the project would engage indigenous companies in the industry for ancillary services, thereby providing direct and indirect job opportunities. He stated that CPDC has developed a strong community engagement strategy to forestall any crisis that could hinder operations.
The signing ceremony held on Thursday at the Grand Hyatt Hotel in Dubai, the United Arab Emirates (UAE). The event was witnessed by the Chief Financing Officer (CFO) of the NNPC, Alhaji Umar Isa Ajiya, and other top officials of the NDPC and CDPC
About OML 65
OML 65 is an onshore block in the western axis of Niger Delta containing one producing field in Abura. Abura Flowline OML 65 traverses seven communities which also included: Emadadja, Ubogo, Ogbe-Udu, Ogolor-waterside and Ogolor-inland. There are no processing facilities at Abura, and all oil production is tied back to the nearby Utorogu flow station on OML 34. From here oil is exported to the Forcados oil terminal.
The Nigerian Petroleum Development Company (NPDC) is one of the upstream subsidiaries of the Nigerian National Petroleum Corporation (NNPC) that was established in 1988 to engage in the business of Oil and Gas Exploration and Production. It currently has an equity production of about 180,000 barrels of oil per day. NPDC has 100 per cent ownership of OML 65.
CMES-OMS is a wholly owned indigenous Limited Liability Exploration and Production Company in Nigeria, with her parent companies well celebrated in local content EPC and oil field security solutions services to the Nigerian oil industry. The Company leverages her Global oilfield financing experience, coupled with 100% indigenous local content expertise in oil field infrastructure and security, to deliver bespoke solutions to clients that lead to asset enhancements via strategic alliances in hydrocarbon exploration, production, and safe distribution systems.
The Company has carried out numerous EPC and Security projects for numerous clients in the Oil Industry in Nigeria, spanning the engineering, procurement and design of numerous Production Platforms, Platform Templates, Jackets, Slots, Manifolds, Early Production Facilities, Metering Units, Pipeline Constructions, Storage Facilities and General Maintenance.