The Nigerian National Petroleum Corporation (NNPC) and Bonga Production Sharing Contract (PSC) partners, have signed watershed agreements to unlock $700m (about N320bn) revenue to the federation.
The revenue is expected to be generated by way of gas revenue and lease renewal fees, adding that the pact would also unlock about two billion barrels of oil for Nigeria under the Oil Mining Lease 118.
Under the arrangement, the NNPC and Bonga PSC partners will be executing five agreements that will deliver about $700m of immediate benefit to Nigeria.
The five agreements signed include, dispute settlement agreement, settlement agreement, historical gas agreement, escrow agreement and renewed psc agreement.
It will also help to ensure $6bn savings of arbitral liability on the Federal Government and unlock 10 000 direct and indirect employment opportunities to Nigeria
This new agreement will also help to re-balance fiscal terms and address global competition in prioritization of investments by key players.
The OML 118 with its straddle fields, boast of the presence of the five Major Players in the deep water space not only in Nigeria but also globally.