By Oscarline ONWUEMENYI

ABUJA – In line with its objective of increasing exploration and production of hydrocarbon resources with a view to growing the nations oil reserves to 40million barrels of crude, the Federal government on Tuesday renewed the leases of OLS 67, 68 and 70 shallow waters with Mobil Producing Nigeria Unlimited, under the NNPC/Mobil Producing Nigeria Joint Venture operation.

The Minister for Petroleum Resources, Mr. Odein Ajumogobia, who signed the agreement on behalf of the Federal government disclosed during the ceremony, in Abuja , that government was renewing the leases being satisfied  with the existing relationship with MPN and because of the need to optimize the production of the nation’s vast hydrocarbon resources.

While describing the signing ceremony as historic, Ajumogobia stated that the renewal of the leases marked the renewal of a relationship spanning over 40 years promising a better and rewarding future.

Tracing the history of the NNPC/MPN Joint Venture, the Minister noted that sequel to the expiration of the Lease in November 2008, Government extended the lease by one year to give ample time for negotiations prior to the signing ceremony.

In his address, the Managing Director of ExxonMobil, Mr. Mark Ward, stated that the renewal of the NNPC-MPN Joint Venture leases was an empowerment to continue the mutual beneficial relationship with Nigeria that has spanned over the last four decades.

He explained that Mobil’s operations of its leases which produce 580,000 barrels of crude per day, have generated tremendous value to the government and the economy of Nigeria .

While commending the Federal Government for the tremendous success of its amnesty programme, the MPN Managing Director said it has created the peace and stability crucial to their developing production and growing reserves.

Ward explained that over the last decade, the JV operations alone contributed significantly to the nation’s economy by generating significant revenue, paid tax and royalty to the Federal Government.

He also noted that Mobil Producing Nigeria (MPN) as part of its corporate social responsibility has invested in social projects which touch the lives of millions of Nigerians in the communities where they operate.

He further stated that MPN, with its technical expertise, financial capability and operational experience was poised to partner with the NNPC to realize government’s target and objectives of growing production reserves, developing domestic gas supplies and volumes for the industrial development of Nigeria .

Ward disclosed that his organisation was committed to developing Power Projects at their Qua Iboe Terminal facilities in Akwa Ibom State .