Nigerian National Petroleum Corporation is to appear before the committee in two weeks, but lawmakers say they will invite President Muhammadu Buhari as the minister of petroleum resources if NNPC fails to appear as it has done in the past.
Sylva defended the revocation using portions of the Act that give the minister power to “revoke any oil prospecting licence or Oil Mining Licence” in the event of clear breaches by a “Licence” and other reasons specified in the Act.
Sylva informed that the said assets have not been optimally managed, adding that they were producing 130,000 barrels per day before acquisition by Addax which fell to 25,000 barrels per day.
Examining Addax Lease Revocation, Restoration 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.
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.
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.