The Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has signed a $876 million oil and gas deal with Cold Water Petroleum Development Company (CPDC) for the development of Oil Mining Lease (OML) 65.
At the signing ceremony at the Grand Hyatt Hotel in Dubai, United Arab Emirates (UAE), the NPDC Managing Director, Mr. Mansur Sambo, said the federal government would be expecting higher revenue in form of taxes and royalties from the agreement.
In addition, it was expected to “open up production potentials of the OML 65 from 9,000 to 40,000 barrels per day and add to the country’s reserve base.”
According to a statement, Sambo signed on behalf of the NPDC while CDPC’s chairman, Capt. Idahosa Wells Okunbo, signed on behalf of his organisation, in the deal tagged ‘the $876 Million Financing and Technical Service Agreement (FTSA).’ The NPDC MD said the deal has the potential to “explore, appraise and add reserves to base,” adding that it will help the federal government to “earn more than $6 billion in taxes and royalties.”
Speaking on the agreement, Okunbo was quoted to have hailed the local content policy of the present administration and the leadership of the NNPC, promising the commitment of his company to deliver on the terms of the agreement.
“While government is about delivering value, and that is exactly what our core values are, that is what we do in the industry. We thank the president and NNPC for recognising all our efforts over the years and trusting us with this sort of opportunity at this particular time,” Okunbo said.
“We are also very dedicated to creating those values and bringing the oil that is very much desired in that particular field for so many years.
“This is a sign of good things to come and this is what this government is about. It is unfortunate that there is no money to pick on the street; people have to use their brains to deliver value to Nigeria and also be able to deliver value to themselves. It is a milestone both for us and the NNPC.”
He further stressed that the CDPC “will strive to do it right so that more people will have the same opportunity we have today because NNPC has a lot of assets that need to be delivered.
“We proper service delivery and a commitment to the agreement to increase the production on that field and give Nigeria the desired value.”
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.