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Uche Usim, Abuja
The Nigerian National Petroleum Corporation (NNPC) has signed a novation agreement with Nigerian Agip Oil Company (NAOC) on Oil Mining lease (OML) 60,61,62 and 63.
Nigerian Agip Oil Company (NAOC) Limited operates in the Niger Delta, under a joint venture arrangement with NNPC (60 per cent), NAOC (20 per cent), and Oando (20 per cent),
The Group Managing Director of the NNPC Mallam Mele Kyari, said at the signing agreement in Abuja, on Wednesday that the agreement will strengthen relationship with its partners.
A novation agreement transfers the contractual obligations of one party to a third party or replaces a contractual obligation with another one. All parties involved in this type of contract must consent to the changes.
He said that by the agreement the NNPC had transferred its stake to its subsidiary, the Nigeria Petroleum Development Company, its subsidiary to operate with its partners.
“The federation divested its interests in the NAOC/NNPC joint venture and that means we transfer those interests to Nigerian Petroleum Development Company (NPDC).
He added that part of the requirement for the agreement was to have the divestment authorised by the Minister of Petroleum Resources adding that a novation agreement was needed to do so.
He said that the Corporation had issues of lack of assurance that it could not deliver on its responsibilities to its partners.
“Today, we have given them all the comfort and condition precedent for them to be convinced that NPDC will deliver.
“Kyari signed for the NNPC, Fiorillo Lorenzo Manging Director of NAOC signed for NAOC while Mofe Boyo Deputy Group Chief Executive, Oando signed for OANDO
Responding, the managing Director of NAOC, Mr Fiorillo Lorenzo said that the agreement was a welcome development and assured that his company would keep to the terms.
“For us, it is a very important roadmap being together to find a solution and a common ground to operate.
“ABO is an oil field hosting the Oil block OML 125 which produces about 32,000 barrels a day
Meanwhile, NNPC and the Major Marketers Association of Nigeria (MOMAN) are deepening their collaboration to guarantee energy security in the country and grow the petroleum industry.
The Group Managing Director of the NNPC, Mr Mele Kyari, and MOMAN Chairman, Mr. Tunji Oyebanji, made the declaration on Wednesday during a visit by the association’s executive to the Corporation’s helmsman. Speaking during the visit of the Downstream Association, Kyari stated that statutorily, the corporation was mandated to work with all relevant Industry stakeholders to sustain the growth trajectory of the Petroleum Industry as well as ensure energy security of the nation.
