…Recovers 4 Oil Wells

The Nigerian National Petroleum Company Ltd (NNPC) has confirmed the take-over of the Production Sharing Contract (PSC) for four oil wells from Addax Petroleum Development Nigeria Ltd.

The development marks the end of a 24year business relationship on the listed PSCs between the NNPC and Addax Petroleum Development.

In a statement yesterday, the state oil company, now a limited liability company, 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.

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“Consequently, NNPC has taken necessary steps 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 while NNPC continues to remain the Concessionaire of the assets in line with extant laws and regulations,” it noted.

While the TSEA was signed in November 2022, the transfer of the oil wells to NNPC took place on Tuesday January 31, 2023.

Addax reportedly transferred 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

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NNPC Ltd has also appointed the Transition Team lead, Mr Sagiru Jajere, as the managing director of Antan Producing Ltd. Before his appointment, Jajere was the head of PSC investment management at the NNPC upstream investment management services (NUIMS).

He will be supported by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax Assets. The company and NNPC had a long running battle over the operation before the latest amicable settlement.

By Ken Okoye

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