Lagos — After pocketing an estimated $600 million as signature bonus as revenue for the Federal Government, the Ministry of Petroleum Resources yesterday renewed three shallow water oil licences jointly operated by the Nigerian National Petroleum Corporation and ExxonMobil, granting the U.S. energy firm leases of a further 20 years with the option to renew again.

Confirming the renewal of the leaves last night, the Minister of State for Petroleum, Mr. Odein Ajumogobia stated that his ministry had reached an agreement with ExxonMobil on the three oil blocks - oil mining leases (OMLs) 67, 68 and 70 - which were about to expire next month (December).

The minister said the US oil company had paid significant signature bonuses for each of the oil blocks, which was a precondition for their renewal for another 20 years.

He however declined to disclose how much ExxconMobil had paid as signature bonus for the three blocks estimated to have a combined output of 580,000 barrels per day of crude, stating that revealing the amount would prejudice negotiations with Shell and Chevron whose oil leases would either expire this month or in December.

But industry sources disclosed that ExxonMobil paid about $600 million for the three acreages following tough negotiations that lasted for weeks.

Ajomogobia, however, confirmed that during discussions with Shell, the AngloDutch oil mulitnational had agreed to withdraw the law suit it instituted against the federal government last November over its decision to renew the leases under new terms.

Shell, Ajumogobia said, will commence negotiation on five of its leases - OMLs 71, 72, 74, 77 and 79 - with the ministry on Monday, next week.

"Today we have reached an agreement on the terms of new leases with ExxonMobil that will go on for a further 20 years with an option to renew," Ajumogobia told reporters in Abuja.

The three licences -- OMLs 67, 68 and 70 -- are currently producing 580,000 barrels per day of oil and include the Oso, Ekpe, Edop and Ubit fields. They were originally awarded to ExxonMobil in 1968 and expired in December 2008, but were renewed for another year.

In a statement, the company said through Mobil Producing Nigeria and its other operating entities in Nigeria, it has enjoyed a mutually beneficial relationship with NNPC and the Nigerian people for over 40 years.

"During this time, our projects have not only generated significant income for Nigeria but also promoted economic and social development in the country.

"We look forward to continuing this mutually beneficial relationship well into the future," it stated.

Similarly, its managing director, Mark Ward, added: "We certainly have with our partner, NNPC a very aggressive capital investment programme that we perceive continuing to develop and grow the production reserves for these three leases."

The contract renewal negotiations between Nigeria and the IOCs have been hard fought, with China also seeking to gain a stronger foothold in the country's oil industry.

Chinese state energy firm CNOOC in September identified 23 licences in Nigeria in which it would like to buy stakes, including 16 operated by Shell, Chevron and Exxon which expired last November and were up for renewal.

Chevron and Exxon won a year's extension, while Shell successfully sought a court injunction last November allowing it to continue to operate