FG to Earn $6b from OML 65 Development Deal

• FG to Earn $6b from OML 65 Development Deal

The Federal Government will earn an estimated $6 billion from the development of OML 65, stated Mr. Mansur Sambo, the NPDC managing director.

The Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), on Thursday signed $876 million oil and gas development deal with Cold Water Petroleum Development Company (CPDC) for the development of OML 65.

Mr Sambo, who signed on behalf of NPDC during the ceremony that took place in Grand Hyatt Hotel in Dubai, United Arab Emirates (UAE), said the Federal Government would generate revenue in form of taxes and royalties from the deal.

He also stated that the deal would “open up production potentials of the OML 65 from 9,000 to 40,000 barrels per day and add to the country’s reserve base.”

In the deal tagged ‘the $876 Million Financing and Technical Service Agreement (FTSA)’, Capt. Idahosa Wells Okunbo, Chairman, CDPC, signed on behalf of his company.

Speaking on the agreement, Capt. Idahosa Wells Okunbo, said: “While government is about delivering value, and that is exactly what our core values are, that is what we do in the industry. We thank the president and NNPC for recognizing all our efforts over the years and trusting us with this sort of opportunity at this particular time,” Okunbo said.

“We are also very dedicated to creating those values and bringing the oil that is very much desired in that particular field for so many years.”

“This is a sign of good things to come and this is what this government is about. It is unfortunate that there is no money to pick on the street, people have to use their brains to deliver value to Nigeria and also be able to deliver value to themselves. It is a milestone both for us and the NNPC.”

He added that the CDPC “will strive to do it right so that more people will have the same opportunity we have today because NNPC has a lot of assets that need to be delivered.”

“We proper service delivery and a commitment to the agreement to increase the production on that field and give Nigeria the desired value.”