Addax Petroleum Development Company has resolved its protracted dispute with the Nigeria National Petroleum Limited and concluded transfer of its four Oil Mining Leases (OMLs) 123/124, 126/137 for much-needed investment and growth of the facilities.
With this agreement Addax has ceased to be the Production Sharing Contract ( PSC) contractor for the oil mining licenses
The NNPC Chief Finance Officer, Umar Ajiya signed the agreement on behalf of the company while the Managing Director of Addax Petroleum, Yonghong Chen, signed on behalf of his company.
Confirming the development, Addax stated that ” NNPC and Addax Petroleum Development ( Nigeria) on Tuesday Signed a Memorandum of Understanding ( MOU) on the Transfer, Settlement and Exit Agreement ( TSEA) for OML 123/124 and OML 126/137.
Mr Garba Muhammad, Chief Corporate Communications Officer, Nigerian National Petroleum Company Limited (NNPC Ltd) in a statement said the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland.
Muhammad said the contract was terminated after 25 years but subsequently, NNPC signed another PSC with Addax in 1998 on the blocks and operated through Addax Petroleum for another 24yrs.
He said in 2021, issues around the revocation of the licences were reconsidered.
This, he said made the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) advise that the assets be returned to the Concessionaires (NNPC Limited) to ensure clean and amicable exit for Addax.
“On January, 25, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by series of meetings to ensure a swift close-out of the exit discussions and formalities.
“These discussions eventually paved way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA),” he said.
In his remarks at the close-out and signing ceremony, the NNPC GCEO, Mele Kyari, charged the Transition Management Team to hit the ground running towards restoration and fulfilment of the promise of the Assets.
He promised that readjustment will be swift and efficient, in order to extract optimum value from the assets, and to deliver maximum value to shareholders.
Bala Wunti, Head of National Petroleum Investment Management Services ( NAPIMS) said ” this is the first time in the history of the hydrocarbon production journey that a PSC will be transferred to us in a prudent mannner”
He noted that in another two weeks, NNPC Limited will be able to bring back about 10,000 barrels of oil.
The event was attended by Chairman, NNPC Board, Sen. Margary Okadigbo, Group CEO, Mele Kyari, Executive VP, Upstream, NNPC, Adokiye Tombomieye, Habib Nuhu of Nigerian Upstream Petroleum Regulatory Commission while MD, Yonghong Chen led other top officials of Addax
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