NNPC Limited, partners amicably resolve Addax dispute

By Gloria Akudoro, Abuja

In its effort to pave way for much needed investments and growth of the oil blocks, the Nigerian National Petroleum Company Limited (NNPCL) and partners has finally resolved amicably the protracted dispute on OMLs 123/124 and 126/137 operated by Addax Petroleum Exploration Nigeria Limited on Tuesday, November 1, 2022.

In a statement signed by Chief Corporate Communication Officer, Garba Deen Muhammad and made available to Nigerian NewsDirect yesterday.

According to the statement, “the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland, terminated after 25 years. Subsequently, NNPC signed another PSC with Addax in 1988 on the blocks operated through Addax Petroleum for another 24 years.”

In 2021 issues around revocation of the licenses were reconsidered and the Nigerian Upstream Petroleum Regulations Commission (NUPRC) advised that the assets be returned to the concessionaries (NNPC LTD) to ensure clean and amiable exit for Addax.

On 25th January 2022, the NNPC LTD commenced formal engagement with Addax and NUPRC followed by series of meetings to ensure a swift close-out of the exit discussion and formalities. These discussions eventually paved way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA).

Speaking during the signing ceremony, the NNPC Group Chief Executive Officer, Mallam Mele Kolo Kyari, tasks transition management team to get to work right once on Assets restoration and fulfilment.

He, however, assured its partners that readjustment of the agreement will be swift and efficient in order to extract optimum value from the asset and to deliver maximum value to stakeholders.