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Pres. Buhari directs termination of Addax contract with NNPC, assets taken over 

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Backed by the Presidency, the Nigerian National Petroleum Company Ltd says it has terminated the Production Sharing Contract (PSC) with Addax Petroleum Ltd on four oil blocks — OMLs 123/124 and 126/137.

The Group Chief Executive Officer of the NNPC Ltd, Mele Kyari, who spoke at the event, said the step would further strengthen the already existing cordial relationship between the People’s Republic of China and Nigeria.

He also stated that the long dispute over Addax Plc coming to an end was directed by President Buhari, to pave way for things to be put in place for smooth operation of the assets, and also set up necessary framework for the assets to be beneficial to Nigeria.

The meeting which was held at the NNPC Towers in Abuja, witnessed the handing over of the operatorship of OMLs 123/124 and 126/137 to Antan Producing Limited on an interim basis, pending the emplacement of a substantive replacement in compliance with the directive of President Buhari.

Persecondnews reports that the Nigerian National Petroleum Company Ltd had announced Engr. Sagiru Jajere as the Managing Director of Antan Producing Limited.

The outgoing Managing Director of Addax, Yonghong Cheng visibly overwhelmed with the proceedings, said it was a win-win outcome, as well as the restoration of the relationship between China and Nigeria.

Kyari said: “Today is a great day for us at the nnpc, we have drawn to a close a very very long dispute over the Addax Plc. Today it has been come to end as clearly directed by Mr President, NNPC in its wisdom has made sure that this amicable arrangement is in place so that we take over the operations of this assets and put up the necessary framework for the operation of this asset to be beneficial to the benefit of our country and to others.

“Of course, this is a message to the whole world that our country is a very reliable physical environment. We keep to our agreement and also as a country we are ready for business.

”We believe this closure will also further and soften the already cordial relationship between people’s Republic of China and Nigeria.”

The Chief Upstream Investment Officer (CUIO), NNPC Upstream Investment Management Services (NUIMS) Bala Wunti, he noted that since NNPC took over the assets, the oil output on the assets rose astronomically from 6000 barrels per day to 16,000 barrels per day.

He said, “Out of this four OMLCs, two were producing. Since taking over of this assets, it Production has grown fron 6000barrels to 16,000 barrels combined fron the two assets and we have recorded zero downtime since then.

“This wouldn’t have been possible without the collaborative support of the Addax management.

“We have been able to achieve the technical component of the agreement. It involves transferring 179 that are required currently being used to operate Addax.

“That is excluding terms that says we will cancel them. We are transferring 81 cases and disputes at different levels.”

The outgoing Managing Director of Addax, praised President Buhari for his Leadership and support to foreign investors, as well as Mele Kyari for his outstanding commitment in achieving this great feet.

Yonghong Cheng said, “This demonstrates the power of cooperation which has resulted in the restoration and the strengthening of the relationship between NNPC and Addax on one hand and our parent countries, Nigeria and China on the other hand.

“We have achieved this important milestone. This is good for all of us.

” I will like to thank His Excellency, President Muhammadu Buhari for his leadership on this issue and his support for foreign investors and also appreciate the management of NNPC Ltd and the leadership of the able GCEO, Mele Kyari, for his commitment and focus towards achieving this.”

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