The Nigerian National Petroleum Company (NNPC) Limited, on Friday, renewed oil production sharing contracts (PSCs) with its partners — after nearly three decades.

The renewal is in line with the provisions of section 311 of the Petroleum Industry Act (PIA). NNPC said it has also resolved lingering disputes with its production sharing contracts (PSCs) partners.

Some of the partners are Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), and Esso Exploration and Production Nigeria Limited (EEPNL).

Under the PSCs arrangement, the country as the sole owner of the oil engages contractors to provide technical and financial services for exploration and production. When oil is found, the contractor pays rent (royalty) on the right to extract, recoups its expenditure/costs, takes a major chunk of the profits over the project’s life and pays taxes due on its profits.

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