NNPC Seals Pact With CNOOC, SAPETRO To Resolve OML 130 Dispute

The Nigerian National Petroleum Corporation(NNPC) together with CNOOC Limited has signed a Head of Terms agreement with South Atlantic Petroleum Limited.

The agreement signing which took place on Thursday in Abuja signifies a major milestone towards the resolution of all disputes related to Oil Mining Lease 130 Production Sharing Contract.

HoT is a document which sets out the terms of a commercial transaction agreed in principle between parties in the course of negotiations.

CNOOC had been involved in a tax dispute in Nigeria. In 2007, the company had said a local tax office in Nigeria had raised a disagreement in tax filings made for the $2.3bn purchase of a 45 per cent stake in the OML 130 license from South Atlantic Petroleum Ltd. in 2006.

The OML 130 consists of producing fields such as Akpo and Egina.

Egina Field, located 150 kilometres off the coast of Nigeria commenced production on  December 29 2018 while the Akpo Field started production in 2009.

CNOOC Limited, holds 45 per cent interest of the OML 130 block, in partnership with the NNPC.

TOTAL Upstream Nigeria Limited which holds 24 per cent interest is  the operator, while Petrobras Oil and Gas BV holds 16 per cent interest and SAPETRO holds 15 per cent.