Nigeria has renewed oil licences which will let US energy giant ExxonMobil operate three big fields that produce about 500,000 barrels of crude a day for 20 years, the government said on Wednesday. A statement released by Oil Minister Diezane Alison-Madueke said he hoped the signing of a deal at the end of a "painstaking" lease negotiation would encourage other investors in the sector.
New investment in the west African nation has stalled owing to long-delayed oil sector reforms. The petroleum industry bill which is designed to bolster the fortunes of Nigeria's 50-year old oil industry, has been before parliament since 2009. "I am delighted that after a somewhat lengthy process both parties that ... have arrived at what they consider a mutually fair agreement in which to work together for another 20 years," she said at the signing ceremony.
New investment in the sector has also been hindered because the state oil firm NNPC - which operates joint ventures with the major oil giants - is under-funded. Nigeria is Africa's oil giant, and produced 2.18 million barrels per day in January, according to the International Energy Agency. Nigerian authorities say current average production, including condensates, stands at 2.5 million bpd, and the oil minister expects production to increase by 180,000 bpd in the coming weeks.
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