By Habeeb Adamu
The Nigerian National Petroleum Company Limited (NNPC) has announced the termination of a 24-year Production Sharing Contract (PSC) with Addax Petroleum Development Nigeria Limited, marking the exit of the Sinopec of China’s subsidiary.
The amicable settlement was reached after both parties fulfilled closing obligations which signals the end of over two decades long PSC relationship between NNPC Ltd and Addax,
NNPC said the contract was amicably terminated three months after the execution of the Addax Transfer, Settlement and Exit Agreement (ATSEA) for the PSC oil blocks, OMLs 123/124 and 126/137, operated by Addax all closing obligations have been concluded and the assets have been transferred to the Concessionaire, NNPC Limited.
Consequently, NNPC said it has taken necessary steps to take over the assets and oversee a clean, amicable, and speedy exit for Addax Petroleum Ltd., to operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor while NNPC continues to remain the Concessionaire of the assets in line with extant laws and regulations,” the oil firm stated.
Amid the fulfilment of the closing obligations by the parties which became 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 explained.
Meanwhile, the NNPC has announced the appointment of the transition team led by Sagiru Jajere, as the managing director of Antan Producing Limited. Jajere was, before his appointment, the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS).
The national oil firm added that Jajere would be supported by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax assets. In the meantime, it was learnt that Antan Producing Limited is a fully owned subsidiary of the NNPC.
“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,” the NNPC said.
