Nigeria: NNPCL Seals Deal With Addax, Takes Over Oil Blocks

31 January 2023
Vanguard (Lagos)
By Obas Esiedesa, Abuja

NNPC Limited Tuesday officially took over OMLs 123/124 & 126/137, operated by Addax Petroleum Development (Nigeria) Limited after concluding all transaction obligations.

The deal ends a 24-year production sharing contract arrangement between both parties.

NNPCL in a statement by its Chief Corporate Communications Officer, Garba Deen Muhammad in Abuja said the transfer was achieved three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks.

The national oil company declared that it has "taken necessary steps to take over the assets and oversee a clean, amicable, and speedy exit for Addax Petroleum Ltd., operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor while NNPC Limited continues to remain the Concessionaire of the assets in line with extant laws and regulations".

It added that "exit negotiations and formalities have been concluded and NNPC Ltd. in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC have agreed on the clean and amicable exit for Addax by resolving all the PSC contractual issues, including litigations that culminated in the execution of a Transfer, Settlement, and Exit Agreement (TSEA) on the 1st of November 2022.

"With the fulfillment of the closing obligations by the parties and effective January 31, 2023, Addax transfers the operatorship of OMLs 123/124 and 126/137 to Antan Producing Limited on interim basis through the transition period pending the emplacement of a substantive replacement PSC in compliance with the directive of Mr. President".

NNPC Ltd. had announced the appointment of the Transition Team lead, Mr Sagiru Jajere, as the Managing Director of Antan Producing Limited.

Mr Jajere was, before his appointment, the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS). He will be supported by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax Assets.

Read the original article on Vanguard.

Tagged:
Copyright © 2023 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.