May 22, 2024
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OIL & GAS

NNPC TAKES OVER ADDAX PS

The Nigerian National Petroleum Company Limited says it has taken over the asset of Addax Petroleum’s production sharing contract (PSC), a company owned by Sinopec, a state-owned Chinese firm.

This development was made known to the general public via the company’s twitter handle on Tuesday 31st January 2023 after the document signing ceremony. The ceremony marked the termination of the 24-year Production Sharing Contract agreement between NNPC and ADDAX.

Attached to the tweet was a video of Mallam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Limited, GCEO; and Yonghong Chen, outgoing Managing Director (MD), Addax, signing the closing documents on behalf of the two companies.

Just two months ago, Addax Petroleum Development Nigeria transferred four major oil mining leases (OMLs) to the national oil company, after exiting from the assets and both parties signed a memorandum of understanding on the transfer, settlement, and exit agreement
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This agreement now denies Addax the PSC contractor status for the four oil mining leases (OMLs) 123, 124, 126 and 137 which were earlier revoked in 2021 by the defunct Department of Petroleum Resources (DPR) though later reinstated by President Muhammadu Buhari.

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