The Nigerian National Petroleum Corporation Limited (NNPC. Ltd) has sealed a significant deal with American oilfield company, Schlumberger (SLB), to boost upstream operations in Nigeria’s oil and gas sector.
This is contained in a statement by the spokesperson of NNPC, Olufemi Soneye, on Thursday in Abuja.
According to the statement, both oil majors signed a technical partnership agreement to foster investment in the upstream sector of the country.
Soneye noted that the agreement was finalized at the Corporate Headquarters of NNPC Ltd. in Abuja on Thursday, and it was attended by senior management teams from both companies. He did not, however, mention the financial details of the deal.
Soneye relayed a statement from Mr. Mele Kyari, Group Chief Executive Officer of NNPC Ltd., indicating that the agreement would enhance operational activities and expand drilling campaigns, thereby adding value to both organizations.
“Quite a number of reforms are unfolding, and at the back of it is a potential release of investments that we are seeing in the very short term.
“Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr. President has put in place; and ultimately, we are already seeing substantial energy going into unlocking opportunities of today.
“We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country,” Kyari said.
What Schlumberger is saying
On its part, the Chief Executive Officer of Schlumberger (SLB), Mr. Olivier Le Peuch, said that the agreement is set to fast-track the attainment of Nigeria’s exploration and production objectives.
He said this acceleration would bolster Nigeria’s economic growth and prosperity.
“We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd. To achieve its exploration and production targets.
“We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs,” Le Peuch further said.
He noted that as a company that has been on the shores of Nigeria for 70 years, Schlumberger (SLB) remains committed to investing in local talents and building capacity through technology and performance.
“We are pleased to be at the centre of this transition and are in a position where we can bring our technical capability, technology, and capacity to the country to support the operations of NNPC Ltd,” he added.
What you should know
The upstream segment of the oil and gas sector is the pinnacle of the oil and gas industry in Nigeria and it’s managed by the regulatory body, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
- NUPRC is charged with the responsibility to monitor the oil and gas industry to ensure compliance with relevant regulations and laws.
- Alongside the NNPC, the NUPRC also oversees the safety and other regulations that relate to the exportation and importation of oil products into the country.
- As part of its activities, the department manages the upstream and downstream sectors of Nigeria’s petroleum industry.
- In addition, the Federal Government introduces National Production Monitoring Systems (NIPMS) to monitor the royalty payables and demand notices from all organizations dealing in petroleum in Nigeria.
