Local content regulations and the implementation of the AfCFTA have triggered the creation of a highly competitive domestic hydrocarbons market within Africa’s largest oil producer. Nigeria represents one of the continent’s most mature oil and gas markets as well as the largest oil producer in sub-Saharan Africa. The country’s energy achievements have largely been attributed
Interrogating the NNPC/Addax face-off over oil mining leases [opinion]
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By Meifor Igwe
IN contemporary Nigerian business context, oil mining leases are like the gold fish that cannot be hidden. And that is why oil mining leases 123, 124, 126 and 137 made headline news 23 years ago and they are back in the media space creating waves once again. They hold huge potential for Nigeria and everyone and can, therefore, not remain idle!
It is a fact that in 1998, the Nigerian National Petroleum Corporation, NNPC, entered into a 20-year Production Sharing Contract, PSC, in respect of certain oil mining leases (OMLs) with Addax Petroleum, a company listed on the Toronto Stock Exchange, TSX. The PSC was subsequently extended for a further four years, until 2022. The assets were OMLs 123, 124, 126 and 137.
Kema Maxwell
President Muhammadu Buhari had in March approved a decision to revoke the Oil Mining Licences of Addax Petroleum being managed by Sinopec and domicile same with the Nigerian National Petroleum Corporation (NNPC) for allocation to new operators.
The industry regulator, the Department of Petroleum Resources (DPR) announced the revocation of the Production Sharing Contract (PSC) of four Oil Mining Licences (OMLs) previously managed by the Chinese oil company Sinopec and assigned the rights to an indigenous consortium.
Our Group, Good Governance Advocates, which is committed to transparency in government was enthusiastic that it was not just a well thought-out decision based on the economics of the Production Sharing Contract but a pragmatic one that is necessary in view of the dire state of our national assets.