By Teddy Nwanunobi
Barely 48 hours after the Department of Petroleum Resources (DPR) commenced the process of formal handover of the revoked assets of Addax Petroleum Exploration Nigeria Limited to its new operators, Kaztech/Slavic Consortium, President Muhammadu Buhari has ordered the restoration of the leases on OMLs 123, 124, 126 and 137 to the Nigeria National Petroleum Corporation (NNPC).
Valuechain reports that the NNPC is in a production sharing contract with Addax Petroleum.
According to a statement issued by the Senior Special Assistant to the President on Media & Publicity, Garba Shehu, in Abuja, on Friday, the DPR is to retract the letter of revocation of the leases.
Buhari also directed the “NNPC to utilise contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between NNPC and Addax”.
Valuechain reports that Addax Petroleum is a company that is wholly owned by the Government of the People’s Republic of China.
It would be recalled that the Director of DPR, Engr. Sarki Auwalu, had, on Wednesday, inaugurated a team of experts to evaluate the revoked assets of Addax Petroleum Exploration Nigeria Limited, in preparation for formal handover to the new operators, Kaztech/Slavic Consortium.
But Buhari’s order means that the NNPC will boost its crude oil production.
The Presidential spokesperson said that the directive was in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
, President Muhammadu Buhari has approved the restoration of the leases on OMLs 123, 124, 126 and 137 to the Nigeria National Petroleum Corporation
“This development reaffirms the commitment of President Buhari to the rule of law and sanctity of contracts.
“While directing the Department of Petroleum Resources, DPR to retract the letter of revocation of the leases, the President also directed NNPC to utilise contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between NNPC and Addax.
“The restoration of the (blocs) 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,” the statement read.
Auwalu, during the inauguration of the committee, had said that the move was aimed at stimulating the economy and creating job opportunities for Nigerians.
He charged the committee to evaluate the current status (As-is) of the revoked assets, including liabilities post revocation, in order to facilitate takeover of the assets by the newly appointed operators of the assets.
Auwalu advised the committee to discharge the responsibility entrusted on them by the nation with all sense of patriotism and dedication to national interest.
He had given the committee one week to conclude the assignment.
Valuechain reports that the four assets, which belong to the federation, were revoked on March 30, 2021 due to the non-development of the assets by the company.