The Nigerian National Petroleum Corporation (NNPC) has signed a novation agreement with Nigerian Agip Oil Company (NAOC) on Oil Mining lease (OML) 60,61,62 and 63.
Nigerian Agip Oil Company (NAOC) Limited operates in the Niger Delta, under a joint venture arrangement with NNPC (60 per cent), NAOC (20 per cent), and Oando (20 per cent),
The Group Managing Director of the NNPC Malam Mele Kyari said at the signing agreement in Abuja, on Wednesday that the agreement will strengthen relationship with its partners.
A novation agreement transfers the contractual obligations of one party to a third party or replaces a contractual obligation with another one. All parties involved in this type of contract must consent to the changes.
He said that by the agreement the NNPC had transferred its stake to its subsidiary, the Nigeria Petroleum Development Company, its subsidiary to operate with its partners.
“The federation divested its interests in the NAOC/NNPC joint venture and that means we transfer those interests to Nigerian Petroleum Development Company (NPDC).
“The meaning of that is to grow NPDC to become a medium size upstream company that the federation and the NNPC will be proud of,’’ he said.
He added that Part of the requirement for the agreement was to have the divestment authorized by the Minister of Petroleum Resources adding that a novation agreement was needed to do so. (NAN)

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