NNPC renegotiates commercial contract terms with major oil companies

The Nigerian National Petroleum Corporation (NNPC) is renegotiating commercial contract terms with major oil companies in the country.

Mallam Mele Kolo Kyari, the Group Managing Director of the NNPC, disclosed this in an interview, stressing that new commercial terms were being negotiated and would be finalized before a pending oil overhaul bill is passed.

#Nigeria negotiates terms with Big Oil to keep investments@MKKyari:“No company will invest where they can't get appropriate margin..We’re very conscious of the fact that people have choices,companies will make choices to leave countries when they have to”https://t.co/Ct4SttA2xX

— NNPC Group (@NNPCgroup) February 6, 2021

The Nigerian Senate has promised to pass the long-awaited oil overhaul bill by May. It will define the petroleum sector for decades to come, but companies have criticized the draft for not doing enough to attract development dollars. They have raised issues over taxation, royalties and local community obligations.

Amaka E. Nliam