NNPC anticipates the agreements to convert the oil mining lease into a petroleum mining licence. Credit: Wonita or Troy Janzen from Pixabay.

Nigeria’s state-owned oil company Nigerian National Petroleum Company (NNPC) has renewed agreements pertaining to the Oil Mining Lease 130 (OML 130) located offshore Niger Delta, with Total, China National Offshore Oil Corporation (CNOOC) and others, reported Reuters.

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The agreements included a production sharing contract (PSC) between NNPC and its contractors, CNOOC & South Atlantic Petroleum (SAPETRO) with Total Upstream Nigeria (TUPNI) as the operator; a settlement repayment agreement (SRA) addendum between NNPC and its contractors CNOOC and SAPETRO, reported Leadership News.

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It also covered heads of agreement (HoA) amendment between NNPC, TUPNI, SAPETRO, PRIME 130, & CNOOC; concession contracts for one petroleum prospecting licence (PPL) and three petroleum mining leases (PML) as well as a lease and license instruments between NNPC, TUPNI, SAPETRO, PRIME 130 and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The agreements are expected to pave the way for a “to firm up final investment decision” on the Preowei project, which is estimated to cost $2.1bn for development, reported Reuters citing NNPC  stating.

Furthermore, NNPC anticipates the agreements to convert the oil mining lease into a petroleum mining licence.

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Located at water depths of over 1000m, the OML 130 block comprises the producing Akpo and ultra-deepwater Egina fields and the Preowei discovery.

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The Akpo field was commissioned in 2009, while the Egina field started production in 2018.

Currently, the OML 130 has production capacity of 170,000 barrels per day.