Nigeria Strikes Deal with American Oil Company Following Discovery of New Oil Well

The Nigerian National Petroleum Corporation (NNPC) Limited has signed a significant agreement with Schlumberger, an American oilfield services company, to expand upstream activities in Nigeria’s oil and gas industry. The state-owned oil company announced this development on Thursday, May 23, in Abuja, through a statement signed by Olufemi Soneye, NNPC’s top corporate communications officer.

Mele Kyari, the Group CEO of NNPC Ltd., highlighted that the ongoing reforms within the industry are poised to attract substantial short-term investments. He emphasized that this partnership holds numerous advantages, promising additional drilling campaigns and increased activity that will be beneficial to both NNPC and Schlumberger. Kyari revealed that NNPC is in the process of developing a rig-sharing platform with a comprehensive plan for robust drilling and related activities in the coming years. This initiative is expected to boost crude oil production and support the ongoing efforts to expand the utilization of gas within Nigeria.

Discussing the long-standing relationship between NNPC Ltd. and Schlumberger (SLB), Kyari noted that NNPC intends to leverage its resources to maximize the benefits of this collaboration. He stated, “We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country.”

Olivier Le Peuch, CEO of Schlumberger, expressed optimism about the agreement, stating that it would accelerate Nigeria’s exploration and production objectives, thereby fostering economic growth and well-being. He remarked, “We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd. achieve its exploration and production targets. We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs.”

Le Peuch emphasized that Schlumberger, a company that has been operational in Nigeria for 70 years, remains committed to developing local talent and enhancing performance and technology within the country. He added, “We are pleased to be at the center of this transition and are in a position where we can bring our technical capability, technology, and capacity to the country to support the operations of NNPC Ltd.”

The agreement between NNPC and Schlumberger signifies a major step forward in Nigeria’s efforts to revitalize its oil and gas sector. The collaboration is expected to lead to increased drilling activities, higher crude oil production, and a more extensive use of natural gas. This partnership is also set to create significant value for Nigeria by attracting investments, fostering economic growth, and enhancing the technological and operational capabilities of the local oil and gas industry.

Furthermore, the development of a rig-sharing platform by NNPC is an innovative approach aimed at optimizing drilling operations and reducing costs. This platform will facilitate the efficient use of rigs, ensuring that drilling campaigns are conducted in a timely and cost-effective manner. The increased drilling activity will not only boost oil production but also contribute to the overall growth and development of Nigeria’s oil and gas sector.

The long-standing relationship between NNPC and Schlumberger, spanning over seven decades, underscores the strong foundation of trust and collaboration between the two entities. This historical partnership has paved the way for the current agreement, which is expected to unlock new opportunities and drive the future growth of Nigeria’s oil and gas industry.

In conclusion, the agreement between NNPC and Schlumberger marks a significant milestone in Nigeria’s oil and gas sector. By leveraging their combined resources and expertise, both companies are well-positioned to achieve their exploration and production goals, create value for the country, and contribute to the economic growth and well-being of Nigeria. This partnership represents a strategic move towards a more sustainable and prosperous future for the Nigerian oil and gas industry.