The Nigerian National Petroleum Company Limited (NNPCL) has taken over the assets owned by Addax Petroleum, following the termination of the Production Sharing Contract (PSC) relationship between both organisations.
A statement signed by Chief Corporate Communications Officer NNPC Ltd, Garba Deen Muhammad on Tuesday in Abuja, noted that it was expected that the much-needed investments would be deployed to the assets, while prudently conducting petroleum activities and creating value for the PSC, government, and other stakeholders.
The statement partly reads: “After fulfilling closing obligations, NNPC Ltd. and Addax Petroleum Development (Nigeria) Limited amicably terminate their 24-Year Production Sharing Contract Relationship.
“Three (3) 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, all closing obligations have been concluded and the Assets have been transferred to the Concessionaire, NNPC Limited.
“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 Limited continues to remain the Concessionaire of the assets in line with extant laws and regulations.”