NNPC inks deal to boost nation’s oil reserve base

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The Nigerian National Petroleum Corporation (NNPC) has signed a partnership with Nigeria Agip Oil Company (NAOC) to boost reserve base.

In a statement released by the corporation, the Group Managing Director of NNPC, Mele Kyari, explained that the partnership was necessary to boost Federal Government’s revenue and in turn boost the nation’s reserve base.

Kyari added that the agreement signed with NAOC further shows the transfer of NNPC’s interest to the Nigerian Petroleum Development Company (NPDC) as part of efforts to grow the NPDC into a medium-size Upstream company.

“The federation divested its interest in the NNPC, NAOC joint ventures and that means we have transferred those interest to the Nigerian Petroleum Development Company (NPDC) in order to grow NPDC, to become a medium-size Upstream company that the federation and the NNPC would be proud of,” Mallam Kyari said.

[READ MORE: New oil discovery to facilitate massive job creation – NNPC)

More details on the agreement: Kyari added that the agreement will help offer and create a new frontier for NPDC to get revenue for the companies and in turn revenue for the nation. He said it would also create employment opportunities for young Nigerians in the oil and gas industry.

“This is the beginning of greater things to come in the oil and gas industry. We are ready to make sure that NPDC delivers on her mandate of exploration as this is a milestone in our quest to grow reserves,” he said.

Meanwhile, the NNPC also recently signed an agreement with the Nigeria Agip Exploration Limited (NAE). The Abo OML 125 Head of Terms Agreement is said to mark a significant advancement towards resolving issues that have lingered in most deep offshore production sharing contracts.