The Nigeria National Petroleum Corporation Limited, NNPC Ltd. and Addax Petroleum Development (Nigeria) Limited have amicably terminated their 24-Year Production Sharing Contract Relationship after fulfilling closing obligations.
In a statement issued by Garba Deen Muhammad , Chief Corporate Communication Officer, NNPC limited, confirmed that both companies reached an agreement after proper negotiations.
“Three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks, OMLs 123/124 & 126/137, operated by Addax Petroleum Development (Nigeria) Limited, all closing obligations have been concluded and the Assets have been transferred to the Concessionaire, NNPC Limited”, he said.
According to Garba Deen Muhammad, NNPC has taken necessary steps to take over the assets and oversee a clean, amicable, and speedy exit for Addax Petroleum Ltd., and will operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor.
He added that NNPC Limited continues to remain the Concessionaire of the assets in line with extant laws and regulations.
“Exit negotiations and formalities have been concluded and NNPC Ltd. 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”, he said.
He added that 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 interim basis through the transition period pending the emplacement of a substantive replacement PSC in compliance with the directive of Mr. President.
“Already NNPC Ltd. has announced the appointment of the Transition Team lead, Mr Sagiru Jajere, as the Managing Director of Antan Producing Limited. Mr Jajere was, before his appointment, the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS)”, he revealed.
He will be supported by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax Assets.As the Addax Assets return to NNPC Limited, it is expected that the much-needed investments will be deployed to the Assets while prudently conducting petroleum activities and creating value for the PSC, Government, and other stakeholders.
