The Nigerian National Petroleum Company (NNPC) Limited has taken over Addax Petroleum Development Nigeria Ltd.’s Production Sharing Contract (PSC) for four oil wells.
NNPC stated in a Tuesday statement that it has peacefully ended its 24-year PSC partnership with Addax.
Three months following the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC oil blocks, OMLs 123/124 and 126/137, operated by Addax, all closing requirements have been fulfilled, and the assets have been handed to the Concessionaire, NNPC Limited.
“Consequently, NNPC has taken the necessary steps to take over the assets and oversee a clean, amicable, and swift exit for Addax Petroleum Ltd., operate the asset on an interim basis as a first step, and then appoint a competent replacement PSC contractor while NNPC remains the Concessionaire,” the report stated.
While the TSEA was signed in November 2022, the oil wells were transferred to NNPC on January 31, 2023.
Mr. Sagiru Jajere, the leader of the Transition Team, has been appointed as the Managing Director of Antan Producing Ltd. by NNPC Ltd.
Prior to the most recent agreeable resolution, Addax and NNPC fought for a long time over the operation.
Mele Kyari, the GCEO of NNPC, and Yonghong Chen, the outgoing Managing Director of Addax, signed the closing documents on behalf of the two parties.
According to reports on Twitter, NNPC said that the two businesses signed the documents today in Abuja.
The formality of signing signified the end of the 24-year PSC between the two oil companies.
NNPC tweeted, “BREAKING: @nnnclimited Acquires the PSC Assets of #Addax Petroleum.
“Today, @nnpclimited and Addax Petroleum Development (Nigeria) Ltd amicably ended their 24-Year Production Sharing Contract (PSC) partnership after completing all closing responsibilities.”
After withdrawing from the assets, Addax Petroleum Development Nigeria transferred four large oil mining leases (OMLs) to NNPC more than two months ago.
The transfer, settlement, and separation agreement were outlined in a memorandum of understanding (MoU) signed by both parties (TSEA).
The defunct Department of Petroleum Resources (DPR) revoked the four Addax licenses in April 2021 due to insufficient development of the assets, but President Muhammadu Buhari reinstated the licenses three weeks later.
