dark

NNPC, Addax sign transfer, settlement, exit agreement on disputed blocks

The protracted dispute on Oil Mining Leases (OMLs) 123/124, 126/137, operated by Addax Petroleum Nigeria Limited, is said to have been finally been resolved, thereby paving the way for much-needed investment and growth of the oil blocks.

In a statement on yesterday, Chief Corporate Communications Officer, Nigerian National Petroleum Company Limited (NNPC Ltd), Garba Deen Muhammad, said the partied have signed a Transfer, Settlement and Exit Agreement (TSEA).

The statement reads: “On January 25, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by a series of meetings to ensure a swift close-out of the exit discussions and formalities.

“These discussions eventually paved the way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA).”

Commenting on the close-out and signing ceremony, the NNPC Group Chief Executive Officer (GCEO), Mele Kyari, was said to have charged the Transition Management Team (TMT) to hit the ground running towards the restoration and fulfilment of the promise of the assets.

He promised that readjustment will be swift and efficient, to extract optimum value from the assets, and to deliver maximum value to shareholders.

The statement also recalled that the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland.

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 24 years.

But in 2021, issues around the revocation of the licences were reconsidered, which made the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), to advise that the assets be returned to the concessionaires, NNPC, to ensure clean and amicable exit for Addax.

In April last year, NUPRC, then working under the label of the Department of Petroleum Resources (DPR) had revoked the licences, citing non-development of the assets for several years.

But the NNPC kicked against the decision before the revocation was reversed by President Muhammadu Buhari, who is also the Minister for Petroleum Resources.

On January 25, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by a series of meetings to ensure a swift close-out of the exit discussions and formalities.

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Reps reject AuGF’s Office Budget, summon finance minister, others

Next Post

CSOs demand justice for climate change

Related Posts
Total
0
Share