Financial Energy Review
by Musa Ibrahim……………
National Petroleum Corporation (NNPC), said it has signed a Head of terms (HoT) agreement with China National Offshore Oil Corporation(CNOOC) and an indigenous oil production firm —South Atlantic Petroleum (SAPETRO).
NNPC noted that this pact is signifying a major milestone towards the resolution of all disputes related to Oil Mining Lease (OML)130 Production Sharing Contract.
OML 130 consists of producing fields such as Akpo and Egina, as a result of this agreement NNPC will also sort out other disputes with some International Oil Companies (IOCs) who have been accused of under declaring production volumes.
The NNPC had previously accused some of these oil firms of under-declaring crude exports for three years between 2011 and 2013.
It is said that NNPC had alleged that the likes of Shell, Total, Chevron, and Eni under-reported crude oil exports in their oil fields to the tune of 57 million barrels. The NNPC even sought repayments valued at $12.7 billion from the oil companies, according to a suit filed before the Federal High Court in Lagos. The companies are said to have denied the accusations.
