• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 15 hours Shale Oil will it self destruct?
  • 10 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 12 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 6 hours Iran Captures British Tanker sailing through Straits of Hormuz
  • 19 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 6 hours Renewables provided only about 4% of total global energy needs in 2018
  • 23 hours Today in Energy
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 49 mins Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
  • 10 hours U.S. Administration Moves To End Asylum Protections For Central Americans
India’s Solution To A 100% Surge In Energy Demand

India’s Solution To A 100% Surge In Energy Demand

India’s increasing hunger for energy…

The Only OPEC Member That Could Challenge Saudi Oil Dominance

The Only OPEC Member That Could Challenge Saudi Oil Dominance

Iraq, OPEC’s second biggest producer,…

NNPC Announces New Deals With Four Oil Majors

Offshore

The Nigerian National Petroleum Corporation has inked new investment deals with four oil companies including Chevron, Shell, Total, and Eni for the development of untapped fields both onshore and offshore. The deals are part of efforts on the part of the Nigerian government to boost crude oil production.

One of the deals is with Chevron and concerns the development of two new offshore oil blocks, according to Platts. Their development should increase the country’s reserve base by 211 million barrels of crude and 1.9 trillion cu ft of gas.

According to a report from Nigerian Daily Trust, the project, Sonam, will supply 215 million cu ft of natural gas per day and 30,000 barrels of per day to the Nigerian market. First production is slated for later this year. Chevron has 40 percent in the project.

The second deal involves the other three companies, which will develop 12 so-called oil mining licenses and 30 fields in the Niger Delta. The development of these deposits has been delayed for lack of funds for years, the NNPC noted.

Part of the reason these projects have been delayed is a debt of about US$5.1 billion that Nigeria owes to five international oil companies. Earlier this year, in April, Oil Minister Emmanuel Ibe Kachikwu announced that Abuja would start repaying its debt to Exxon, Shell, Chevron, Total, and Eni, which cleared the way for negotiations on further investments by these companies in the West African country’s oil industry.

Related: Shell Posts 700% Rise In Earnings, Prepares For ‘Lower Forever’ Oil Prices

The five majors account for 80 percent of Nigeria’s oil extraction through joint ventures with the Nigerian National Petroleum Corp. The debt was incurred as a result of NNPC’s inability to hold up its end of the bargain with regard to investments to be made by the joint ventures.

Nigeria pumped about 1.77 million bpd last month and plans to raise this to 1.8 million bpd before hitting the brakes on production growth to support its OPEC co-members in their price-raising efforts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play