The Nigerian National Petroleum Corporation (NNPC) has signed a Financing and Technical Services Agreement between the Nigerian Petroleum Development Company (NPDC), its exploration and production subsidiary, and Sterling Oil Exploration and Energy Production Company Limited (SEEPCO) to develop Oil Mining Lease (OML) 13.
The deal is worth USD3.15 billion and is targeted to spur the country’s crude oil reserves and daily oil productions to 3 million bpd. The agreement was for a period of 15 years, with the $3.15 billion ceiling funding being provided by SEEPCO with a 10-year capital investment period and five years for cost recovery.
Over the next 15 years, the Federal Government is targeted to earn more than USD10.2 billion in royalties and taxes from the project. NNPC would earn more than USD5 billion after the payment of the entire financing obligation.
OML 13 is located in the east of the Niger Delta, covering a total area of 1,987 square kilometers. The acreage had over 926 mmstb of oil reserves and 5.24 tcf of gas reserves. First oil production is targeted to start on April 1, 2020, of 7,900 bpd. The production peak is expected to happen within four years at 94,000 bpd and 542 mmscfd.
The project is expected to involve 2,000 direct and indirect employments, mostly from indigenous companies in Nigeria.
