Nigeria signs 3-year oil deal with Schlumberger and will earn $5.60 billion in taxes and royalty.

Under the agreement, global oil services giant, Schlumberger, will provide $724.14 million out of the required project cost of $1.082 billion.

Nigeria's state oil firm, Nigerian National Petroleum Corporation (NNPC) has signed three years oil financing deal with First E&P and Schlumberger worth $724 million.

The oil financing deal will enable Nigeria to earn $5.60 billion in taxes and royalty.

Ndu Ughamadu, in a statement issued in Abuja on Sunday, July 1, 2018, said Maikanti Baru, Group Managing Director of NNPC, signed the deal in London.

According to the statement, Maikanti Maru said the package would also provide $1.32 billion in net cash flows after Schlumberger's cost recovery and compensation in line with the terms of the agreement.

Details of the Schlumberger deal

The NNPC had in 2017 signed the tripartite term sheet for the financing and technical services arrangement between NNPC/FIRST E&P JV and Schlumberger for the Anyalu and Madu fields under Oil Mining Licence, OML 83 and OML 85, offshore Nigeria.

By Aderemi Ojekunle.

Full story at Pulse NG.