Nigerian President who doubles as oil minister restores ownership of OML 123, 124, 126 and 137 to NNPC, JV partner with Addax.
President Muhammadu Buhari has ordered the Department of Petroleum Resources (DPR) to retract the letter of revocation of four oil blocks earlier given to Addax Petroleum, a company wholly owned by Government of the People’s Republic of China on the blocks.
The President also approved the restoration of all the OMLs 123, 124, 126 and 137 earlier revoked to the Nigeria National Petroleum Corporation, NNPC which is in production sharing contract with Addax Petroleum.
Garba Shehu, Senior Special Assistant to the President (Media & Publicity) disclosed this in a statement Friday.
Shehu said, “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, 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 leases belonging to the Federation were revoked on March 30, 2021.”
According to the presidential spokesman, “This development reaffirms the commitment of President Buhari to the rule of law and sanctity of contracts.”
Shehu added that “While directing the Department of Petroleum Resources, DPR to retract the letter of revocation of the leases, the President 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.
“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,” the statement read.