NNPC, Chevron Sign N518.5BN Deal To Increase Crude, Gas Production
It is a deal that will last until 2045.
And it will lead to more gas and crude oil production – more revenue to government's pocket.
Nigeria's oil company, the Nigerian National Petroleum Corporation (NNPC) and another multinational oil conglomerate, Chevron Nigeria Limited, CNL entered this pact to increase crude production by about 39,000 barrels per day.
The agreement, which was signed in London, is also expected to achieve an incremental peak production of about 283mmscfd of gas.
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According to the NNPC Group Managing Director, Dr Maikanti Baru, who made the disclosure in a statement on Sunday, the increment in production to be achieved by the agreement would spread "over the remaining life of the asset" – in 28 years' time.
The statement which was issued by Mr Ndu Ughamadu, Group General Manager, Public Affairs Division of the NNPC quoted Baru as saying that the project is about 92% completed and that the funding is expected to be provided by a third-party.
According to Baru, the deal is a step in the right direction, as it would grow Nigeria's daily crude production and support the Federal Government's strategic domestic gas-to-power aspirations.
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