Nigeria has just kickstarted a fresh investment worth $10 billion in the states, with its recent Oil venture with Oil giants Exxon, Total, Shell, and Eni.
The latest Oil deal in the US is anticipated to nip Oil-related woes like dispute settlement, besides also paving lucrative revenue opportunities.The Mining Lease agreements were signed by the representatives of NNPC (Nigerian National Petroleum Corporation) and members of the above-mentioned companies.The deal is expected to ease off the crunch that has been hitting the Nigerian production business with plunging crude value, coupled with the ongoing pandemic.
Nigeria is recognized as the most viable Oil-producing African countries and has been battling a sharp decline in pricing.Posting on the social media platform Twitter, NPC spokesperson has responded on the million-dollar deal, which is quoted as: “This marks a watershed in the administration of deep-water operations in Nigeria”.Adding further, he also said, the deal is expected to unlock a significant investment opportunity worth approximately $10bn.
The deal with global Oil leaders is a step forward to tackle output deficiency and revenue lag. Bonga is Nigeria’s very first field specializing in deep-water drilling. In terms of total capacity, Bonga boasts of a hefty 225,000 total production capacity in crude. It also produces over 150MM of natural gas.According to the recent agreement, OML license between NNPC and the four Oil giants, Exxon, Shell, Total, and Eni, has been renewed for the next twenty years.
Other details that are mentioned in the agreement include tax disputes and production sharing deals. The deal is crucial to expand operations on the Bonga field.Apart from drooping revenues and inconsistent production, tax disputes with Oil honchos such as Shell are likely to efface.