NNPC Takes Over Addax Petroleum’s 4 Oil Blocs After Termination of 24-Year Contract, Appoints New MD

NNPC Takes Over Addax Petroleum’s 4 Oil Blocs After Termination of 24-Year Contract, Appoints New MD

  • The 24-year production contract between Nigerian National Petroleum Company (NNPC) Limited and Addax Petroleum has been terminated
  • The NNPC, through its subsidiary, Antan Producing Limited, will now be in charge of Addax's four oil blocs located in the Niger Delta region
  • A new managing director has been appointed to lead Antan Producing Limited

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The 24-Year Production Sharing Contract (PSC) between the Nigerian National Petroleum Company (NNPC) Limited and Addax Petroleum has ended

The Nigerian National Petroleum Corporation (NNPC) disclosed this in a statement posted on Twitter.

Following the termination, NNPC Limited will now assume ownership of Addax Petroleum's assets through its subsidiary, Antan Producing Limited.

NNPC oil fields
NNPC takes Over Addax Petroleum's Production Sharing Contracts (PSC) Assets Photo credit: @NNPC
Source: Facebook

The assets to be taken over by NNPC includes four oilfields, Oil Mining Leases (OMLs) 123, 124, 126, and 137.

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Why NNPC, Addax are moving on

The relationship between China and Nigeria was reportedly threatened by the conflict between NNPC and Addax over the oil blocs.

NNPC and Addax have been at loggerheads over oil blocs, and it is reported that the conflicts threaten the relationship between China and Nigeria.

Addax is owned by a Chinese state-owned firm, Sinopec.

Although Addax had been in charge of the oilfields since 1998, the now-defunct Department of Petroleum Resources (DPR) revoked its license in April 2021.

DPR made the decision due to a lack of asset development, but President Muhammadu Buhari stepped in and ordered the oil bloc licenses to be returned.

Despite the president's effort, the conflict between Addax and the Nigerian authorities continued till January 2023, when Addax and NNPC reached an amicable settlement to return the oilfield to the Nigerian government.

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NNPC appoints Jajere as Antan MD after Addax takeover

Meanwhile, following the deal, NNPC has quickly moved to appoint a new managing director for Antan Producing Limited who will be in charge of managing four oil blocs taken over from Addax Petroleum.

The Punch reports that this development means Antan Producing Limited will oversee the smooth running of the oil bloc to achieve optimal production.

A statement from NNPC reads:

“As managing director, Jajere is definitely the kind of technocrat needed to steer this new ship called Antan Producing Limited and lead the team to perform efficiently and profitably and ultimately, increase production and revenue to stakeholders."

Marketers give reason for fuel scarcity across Nigeria

Meanwhile, oil marketers have revealed that the supply hitches associated with the distribution of petrol may persist till June 2023.

According to them, the scarcity of the product in recent times, is based on the federal government’s plan to end the petrol subsidy.

The public relations officer of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike, said fuel imports and subsidy were making Nigerians suffer.

Source: Legit.ng

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