Deji Elumuye and Emmanuel Addeh in Abuja
President Muhammadu Buhari yesterday approved the restoration of the permits on Oil Mining Leases (OMLs) 123, 124, 126 and 137 to the Nigerian National Petroleum Corporation (NNPC) and, by extension, Addax Petroleum.
The Nigerian government, through the national oil company, had been in a Production Sharing Contract (PSC) with Addax Petroleum, a subsidiary of SINOPEC, the national oil company of People’s Republic of China, on these oil blocks.
PSC is a contractual arrangement for exploration and production of petroleum resources where the contractor undertakes all the financial, technical and operational risks associated with petroleum operation in return for a share of profit, after production cost, payment of royalty, and taxes. In this case, the assets are owned by the NNPC which brought in the contractor, Addax.
FG Evaluates Addax Petroleum's Assets thisdaylive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thisdaylive.com Daily Mail and Mail on Sunday newspapers.
By Emmanuel Addeh
Following the federal government’s revocation of the Production Sharing Contracts (PSCs) on four assets belonging to Addax Petroleum Exploration Nigeria Limited (APENL), the Department of Petroleum Resources (DPR) has announced the kick-off of processes that will lead to the handing over of the facilities to new owners.
The oil and gas industry regulator stated Thursday that a committee has already been set up in preparation for the formal ceremony culminating in the takeover by the new operators, Kaztech/Slavic Consortium, after it was taken from the erstwhile owners.
A statement issued by the Head, Public Affairs of the agency, Mr. Paul Osu, said the committee was inaugurated in Abuja on Wednesday by the Director of the DPR, Mr. Sarki Auwalu.
DPR to present revoked oil licences to new operators guardian.ng - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from guardian.ng Daily Mail and Mail on Sunday newspapers.
By Emeka Anaeto & Udeme Akpan
ENERGY
THE Federal government has revoked four Oil Mining Leases, OMLs belonging to Addax Petroleum Nigeria Limited citing inability to comply with work programme targets.
The OMLs are, 123, 124, 126 and 137, all operated by Addax Petroleum Development Company Limited, APDCL and Addax Petroleum Exploration Nigeria Limited, APENL.
According to DPR, the revocation and re-award have already been approved by President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources.
The agency stated that the oil assets are now to be operated by Kaztec Engineering Limited/Salvic Petroleum Resources Limited (KEL/Salvic) Consortium, consisting of two indigenous companies with effect from March 23, 2021.