Adax Petroleum quits Nigeria as NNPC takes over asset
With the agreement between it and Addax, NNPC said the latter would cease to be the Production Sharing Contract (PSC) contractor for the Oil Mining Leases (OML) 123/124 and OMLs 126/137.
Umar Ajiya, NNPCL chief finance officer, and Addax Petroleum’s managing director Yonghong Chen signed the agreement.
“Earlier today, NNPC Limited and Addax Petroleum Development (Nigeria) Ltd signed a Memorandum of Understanding (MoU) on the Transfer, Settlement and Exit Agreement (TSEA) for Oil Mining Leases (OML) 123/124 and OMLs 126/137,” the state oil firm said on its official Twitter page on Tuesday.
The PSC for the blocks was initially signed in 1973 between NNPC and Ashland but it was terminated in 1998, after which Addax took over ownership.
The group managing director, NNPC Limited, Mele Kyari, said the takeover would boost the production of crude oil.
“We have worked with all our regulatory agencies, the FIRS, the FCCPC, NUPRC and all other agencies of government to arrive at what we have today,” Mr Kyari said.
“We believe that we have delivered on the mandate given to us by the government to take over this asset and as expected. There have been ongoing engagements with the FIRS and this is in line with the approvals that we have.
“From today, we expect the asset to take off immediately and we will restore production, ensure all governance requirements and as we proceed and also maintain the confidence of workers in this company in line with the commitment that we have, there will be no disruptions in the operations of this company.
“Lastly, I know that the team in NNPC and Addax have done great work to arrive at what we have today. Today, we see the exit of our partners and we hope they stay with us in Nigeria because Nigeria is a good place to invest,” he said.
