Nigeria: NNPCL takes over ADDAX 3 months after signing exit agreement

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Nigeria - Three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks, OMLs 123/124 & 126/137, operated by Addax Petroleum Development (Nigeria) Limited, the Nigerian National Petroleum Company Limited ( NNPCL) has taken over its operations.

After fulfilling closing obligations, the NNPC Ltd. and Addax Petroleum Development (Nigeria) Limited had terminated their 24-Year Production Sharing Contract Relationship.

In a statement issued on Tuesday by NNPCL Spokesperson Garba Deen Muhammad, the company said all closing obligations have been concluded and the Assets have been transferred to it.

It disclosed that necessary steps have been taken to take over the assets and oversee a clean, amicable, and speedy exit for Addax Petroleum Ltd., operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor.

However, the statement said the NNPC Limited would continue to remain the Concessionaire of the assets in line with extant laws and regulations.

“Exit negotiations and formalities have been concluded and NNPC Ltd. in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC have agreed on the clean and amicable exit for Addax by resolving all the PSC contractual issues, including litigations that culminated in the execution of a Transfer, Settlement, and Exit Agreement (TSEA) on the 1st of November 2022.

“With the fulfilment of the closing obligations by the parties and effective January 31, 2023, Addax transfers the operatorship of OMLs 123/124 and 126/137 to Antan Producing Limited on interim basis through the transition period pending the emplacement of a substantive replacement PSC in compliance with the directive of Mr. President,” the statement partly read.

Already, it said the NNPC Ltd. has announced the appointment of the Transition Team lead, Mr Sagiru Jajere, as the Managing Director of Antan Producing Limited.

The newly appointed MD was, before his appointment, the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS).

“As the Addax Assets return to NNPC Limited, it is expected that the much-needed investments will be deployed to the Assets while prudently conducting petroleum activities and creating value for the PSC, Government, and other stakeholders,” it added.