Monday 7 January 2013

NNPC Directs Oil Firms to Slash Cost of New Projects



The Nigerian National Petroleum Corporation (NNPC) has directed the International Oil Companies (IOCs) operating in the country to drastically cut over $30 billion they proposed as the cost of new products.
The projects have been stalled for several years due to the inability of the NNPC and the IOCs to reach an agreement on the costs.
Some of the projects, it was learnt, include Bonga South West, Bonga North East and Bonga North (Aparo), which are being proposed by Shell Nigeria Exploration and Production Company (SNEPCo), under a Production Sharing Contract (PSC) arrangement with the NNPC.
Some of the IOCs had accused the NNPC of deliberately stalling the execution of some of these multibillion dollar projects.

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