The Nigerian National Oil Corporation and the Ashland Oil Corporation and the Ashland Oil Company on Tuesday (June 12) signed a new product-sharing agreement.
The Nigerian National Oil Corporation and the Ashland Oil Corporation and the Ashland Oil Company on Tuesday (June 12) signed a new product-sharing agreement. Under the agreement, the Ashland personnel will explore two areas vested in the Nigerian National corporation.
After exploration and production cost's, the Nigerian Corporation will receive 65 per cent of the crude oil produced -- up to a production level of 50,000 barrels a day. Above that level, Nigeria will take 70 per cent.
It has been an important week for the Nigerian oil industry. On Tuesday, Nigeria formally acquired a 35 per cent working interest in the biggest crude producing concern in the country -- the Shell-BP operations.
Such agreements are important, too, for European oil consuming countries. Nigeria is one of their major suppliers, and the agreement removes any lingering uncertainties about the future of relations between the companies and the Nigeria government.
The agreements come six months after oil companies in the Persian Gulf concluded participation contracts with their host governments.
Coverage of Tuesday's signing ceremony is accompanied by library film of oil operations in Nigeria.