The Nigerian National Petroleum Company (NNPC) Limited has resolved its prolonged dispute on Oil Mining Leases (OMLs) 123/124, 126/137 with Addax Petroleum Company and signed an asset transfer agreement which puts an end to the commercial disputes on the company’s assets.
According to a statement signed by Garba Deen Muhammad, Chief Corporate Communications Officer, NNPC Ltd, the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland and terminated after 25 years. NNPC also signed another PSC with Addax in 1998 on the blocks and operated through Addax Petroleum for another 24 years.
In 2021, issues around the revocation of the licenses were reconsidered and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) advised that the assets be returned to NNPC limited to ensure a clean and amicable exit for Addax.
“On 25th January 2022, 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),” it read.
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In his remarks at the signing ceremony, Mele Kolo Kyari, GCEO, NNPC revealed that NNPC Ltd has assembled a transition management team to manage oil production and develop the gas potentials of the acreages.
He also urged the team to be proactive toward the restoration and fulfillment of the promise of the Assets.
“The readjustment will be swift and efficient, in order to extract optimum value from the assets, and to deliver maximum value to shareholders,” he said.
The NNPC limited adds that the dispute resolution has paved way for the much-needed investment and growth of the oil blocks.
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