NNPC Limited on Tuesday officially took over Oil Mining Lease (OML) 123/124 and 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.
In a statement by its Chief Corporate Communications Officer, Garba Deen Muhammad in Abuja, NNPCL 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 an 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 Limited, 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 fulfilment 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 an 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.
Until his appointment, Jajere was 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.
