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Revisiting OMLs Revocation, Reversal Saga

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.

Group Faults Buhari s Action on Four OMLs

A Civil Society Organisation, Good Governance Advocates, said it is “saddened that President Muhammadu Buhari has ordered the Department of Petroleum Resources (DPR) to restore the four oil mining licences revoked from Addax Petroleum while directing the DPR to retract the letter of revocation of the leases.” It, however, commended the DPR for taking concrete steps to boost the revenue accruing to the government in the assets. In a statement signed by its National President, Kema Maxwell, Good Governance Advocates acknowledged that Nigeria and China continue to enjoy cordial economic, political and social ties, and support the mutual development of both countries.

ADDAX OML LICENSE IMPASSE: DPR s action will boost government revenue - Group

ADDAX OML LICENSE IMPASSE: DPR’s action will boost government revenue – Group On Kindly Share This Story: In the face of the seeming uncertainty surrounding the revocation, restoration of Addax OML License, and the report of the Committee set up by President Muhammadu Buhari on the issue, which indicted Addax for wasting millions of dollars, a Civil Society Organisation, Good Governance Advocates has commended the Directorate of Petroleum Resources (DPR) for taking concrete steps to boost the revenue accruing to the Government in underperforming assets. In a statement signed by its National President, Kema Maxwell, it noted that in choosing a new operating consortium to manage the OMLs, DPR carefully opted for an operator that is familiar with the revoked assets, and saving the country a huge economic loss.

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