AfrOil: NNPC Ltd signs renegotiated PSCs for five deepwater blocks

Nigerian National Petroleum Co. Ltd (NNPC Ltd) has completed the process of negotiating new production-sharing contracts (PSCs) for five deepwater blocks in a move that is expected to unlock more than $500bn in revenue for the West African country.

NNPC Ltd announced this development on August 12, saying that the renegotiated PSCs covered the offshore blocks known as OML 128, OML 130, OML 132, OML 133 and OML 138. The OML 130 PSC has been renewed in line with the terms of Nigeria’s Petroleum Industry Act (PIA), adopted in August 2021, while the other PSCs have been extended for 20 years on pre-PIA terms, the national oil company (NOC) said.

According to Bala Wunti, the head of NNPC Ltd’s National Petroleum Investment Management Services (NPIMS) subsidiary, the deepwater blocks covered by the new PSCs have the potential to produce some 10bn barrels of crude oil over the next 20 years.