President Muhammadu Buhari has approved the restoration of four Oil Mining Leases (OMLs) to the Nigeria National Petroleum Corporation, NNPC which is in production sharing contract with Addax Petroleum, a company wholly owned by Government of the People’s Republic of China on the blocks.
The OMLs restored include 123, 124, 126 and 137, hitherto owned jointly by NNPC and the Chinese company and the leases belonging to the Federation were revoked on March 30, 2021.
Senior Special assistant to the President on Media and Publicity, Garba Shehu revealed this via a statement he issued on Friday.
READ ALSO: Committee gives NNPC boss 7 Days to appear before Panel
Shehu said the move was in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
“This development reaffirms the commitment of President Buhari to the rule of law and sanctity of contracts,”Shehu added.
He revealed that the President directed the Department of Petroleum Resources, DPR to retract the letter of revocation of the leases, as he also directed NNPC to utilize contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between NNPC and Addax.
He said the restoration of the blocks to NNPC will boost the organisation’s portfolio, thereby making the Corporation to, in the long run, boost its crude oil production and in turn increase the revenue it generates to the Federation Account.
STATE HOUSE PRESS RELEASE
PRESIDENT BUHARI RESTORES OWNERSHIP OF OML 123, OTHERS TO @NNPCgroup #Thread
— Presidency Nigeria (@NGRPresident) April 23, 2021
;
Nnenna.O
