NNPCL takes over ADDAX 3 months after signing exit agreement

Three 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, the Nigerian National Petroleum Company Limited ( NNPCL) has taken over its activities.

After fulfilling the closing obligations, NNPC Ltd. and Addax Petroleum Development (Nigeria) Limited terminated their 24-year production sharing contract relationship.

In a statement released on Tuesday by NNPCL spokesperson Garba Deen Muhammad, the company said all closure commitments have been made and assets have been transferred to the company.

It announced that necessary steps have been taken to acquire the assets and oversee a clean, amicable and prompt exit for Addax Petroleum Ltd., operate the asset on an interim basis as a first step and then appoint a competent replacement PSC contractor to appoint.

However, the statement stated that the NNPC Limited would remain the concessionaire of the assets in accordance with existing laws and regulations.

“Exit negotiations and formalities have been completed and NNPC Ltd. in conjunction with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC and the FCCPC, has agreed on the clean and amicable exit for Addax by resolving all issues. PSC contractual issues, including litigation culminating in the execution of a Transfer, Settlement and Exit Agreement (TSEA) on November 1, 2022.

“With the fulfillment of the closing obligations by the parties and effective January 31, 2023, Addax transfers the management of OMLs 123/124 and 126/137 to Antan Producing Limited on an interim basis during the transition period pending placement of a substantial replacement PSC in accordance with Mr. President’s directive,” the statement read in part.

It already said that NNPC Ltd. announced the appointment of the leader of the transition team, Mr. Sagiru Jajere, as Managing Director of Antan Producing Limited.

The newly appointed MD was head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS) prior to his appointment.

“With the Addax Assets returning to NNPC Limited, it is expected that much-needed investment will be deployed in the Assets as we prudently execute petroleum activities and create value for the PSC, government and other stakeholders,” it added.