ExxonMobil Renews OMLs 133 And 138 Deepwater Leases, Agreement To Unlock $500 Billion Revenue For Nigeria

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ExxonMobil Renews OMLs 133 And 138 Deepwater Leases, Agreement To Unlock $500 Billion Revenue For Nigeria

ExxonMobil Nigeria and the Nigerian National Petroleum Company Limited have announced renewals of OMLs 133 (Erha) and 138 (Usan) deepwater leases for a further 20–year period, which the NNPC says it’s a development that is expected to unlock over $500billion in revenue for the country.

The NNPC called it a major step towards boosting Nigeria’s crude production and unlocking investments in the deepwater space post-Petroleum Industry Act (PIA) enactment.

This is coming a day after President Buhari reportedly rescinded his decision on the approval of Seplat Energy’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU)

During a signing ceremony held today at the #NNPCTowers in Abuja, the parties renewed their agreements in five Oil Mining Leases (OMLs 128, 130,132, 133, and 138).

Speaking on the deal, Exxon Mobil stated “We are pleased to announce the renewals of our OMLs 133 (Erha) and 138 (Usan) deepwater leases for a further 20–year period.

This includes extensions of Production Sharing Contracts with our partner NNPC Limited.

It added that the agreement validates earlier commitment to maintaining a significant deepwater presence in Nigeria via Esso Exploration and Production Nigeria (Deepwater) Limited. It cited that the lease extension is among the first post-Petroleum Industry Act deepwater lease renewals, and applauded the FG for providing the focused leadership and partnership that has led to this achievement.

“These extensions enable us and our partners to unlock the potential value in these OMLs and to bring forward additional investment,” it added.

Meanwhile, the NNPC stated that it is a major step towards boosting Nigeria’s crude production and unlocking investments in the deepwater space post-Petroleum Industry Act (PIA) enactment, citing that NNPC Ltd and its Production Sharing Contracts (PSCs) Contractors have resolved their disputes & signed renewed PSCs.

NNPC Ltd added that the parties renewed their agreements in five Oil Mining Leases (OMLs 128, 130,132, 133, and 138), a development that is expected to unlock over $500 billion in revenue for the country.