NNPC, Shell, ENI take FID on OPL 245 despite court’s ruling

Despite pending court case on the $1.1 billion Malabu oil deal, ENI and Shell are proceeding to Final Investment Decision on a field in the Oil Prospecting Lease (OPL) 245, The Daily Times has learnt.

Both ENI and Shell have been charged with corrupt practices on the bloc.

The Daily Times gathered that both international oil companies are about to take FID on the Zabazaba field, the bigger of the twin Zabazaba-Etan fields, with the Nigerian National Petroleum Corporation (NNPC).

It is worthy of note that NNPC which is also prosecuting a case against the majors will sign the deal with them before the end of the second quarter 2017.

The invoice for the development of Zabazaba, located in 2,000 metre water depth, The Daily Times gathered, is $13.5 billion. The project will produce 560 million barrels of oil for the next 15 years of the contract.

Last check shows that the Federal Government is yet to withdraw from the Malabu case, raising questions why NNPC should go ahead with the planned FID OPL 245.

The new development has sprung up high profiled international legal interest, involving lawyers in three countries.
Our sources, who pleaded anonymity, told The Daily Times that the three parties did not take to reference the present court case on the bloc.

As a matter of suspicion, Simbi Wabote, the Executive Secretary of the National Content Development Monitoring Board NCDMB (an agency that ensures that in-country capacity is taken care of in any oil and gas project), has reportedly given the readiness of NCDMB, to carry out a national content approval for the Zabazaba field development.

Our correspondent also leant the new project has moved from technical bid tenders to commercial tenders.
NNPC officials too are reportedly preparing for the takeoff of the new project.