NNPC takes over Addax Petroleum assets

Our reporter| The Nigerian National Petroleum Company (NNPC) Limited ON Tuesday said it has taken over Addax Petroleum’s production sharing contract (PSC) assets.

Addax is owned by Sinopec, a state-owned Chinese firm.

Mele Kyari, group chief executive officer (GCEO), NNPC Limited, GCEO; and Yonghong Chen, outgoing managing director (MD), Addax, signed the closing documents on behalf of the two parties

In a tweet on Tuesday, NNPC said the documents were signed in Abuja, on January 31, 2023.

The signing ceremony marked the termination of the 24-year PSC relationship between both oil firms.

The development comes months after Addax Petroleum Development Nigeria transferred four major oil mining leases (OMLs) to the national oil company, after exiting from the assets.

Both parties signed a memorandum of understanding (MoU) on the transfer, settlement, and exit agreement (TSEA).

With the agreement, Addax ceased to be the PSC contractor for the four oil mining leases (OMLs) 123, 124, 126, and 137.

The defunct department of petroleum resources (DPR) in April 2021 revoked the four Addax licences over poor development of the assets, a decision that was reversed by President Muhammadu Buhari three weeks later.

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