Malam Mele Kolo Kyari, Group Managing Director of NNPC

Oil Exports: Nigeria strikes deal to end disputes with 2 energy firms

*Agreement reached with China’s Cnooc Limited and local partner

*NNPC in court with oil majors over volumes of crude exported seeking at least $12.7 billion in payments

Isola Moses | ConsumerConnect

In a move signalling a resolution of similar disagreements with other oil majors on revenue from several offshore oil fields in the country, the Nigerian National Petroleum Corporation (NNPC) has signed a preliminary agreement to end a dispute with two energy companies.

The state oil corporation, in a statement via its verified Twitter account, stated that it signed a deal Thursday, August 6 with China’s Cnooc Limited and Lagos-based South Atlantic Petroleum Company to settle disagreements over the production-sharing contract signed on Oil Mining Lease 130.

It is recalled that hitherto, the NNPC had alleged “under-declarations” of crude exports by the said companies between 2011 and 2014.

Without providing details though, the Corporation said that the deal is “a major milestone toward the resolution of all disputes” with energy companies operating in Nigeria.

Malam Mele Kolo Kyari, Group Managing Director (GMD) of NNPC, had said the previous year that a resolution was in the works.

Likewise, the country is also said to have had differences with other oil majors, including Royal Dutch Shell Plc, Total SA, Eni SpA and Chevron Corporation on the quantity of crude exported from their fields.

Nigeria had claimed, five years ago, that the companies either failed to declare or under-declared more than 57 million barrels of oil exports.

The producers, who pump about 80% of Nigeria’s oil output, have always denied the allegation against them by the state oil corporation.

The disputes are currently before a Federal High Court Lagos State where the NNPC is seeking at least $12.7 billion in payments.

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