The assets of Addax Petroleum’s production sharing contract have been taken over by the Nigerian National Petroleum Company (NNPC) Limited (PSC).
The closing documents were signed on behalf of the two parties by NNPC Group Chief Executive Officer (GCEO), Mele Kyari, and the outgoing Managing Director of Addax, Yonghong Chen.
Sinopec, a Chinese state-owned company, owned Addax.
However, according to sources on Twitter, the two corporations signed the contracts today in Abuja.
The signing ceremony signaled the end of the two oil companies’ 24-year PSC relationship.
“BREAKING: @nnpclimited Takes Over #Addax Petroleum’s PSC Assets,” NNPC tweeted.
“After fulfilling closing obligations, @nnpclimited and Addax Petroleum Development (Nigeria) Ltd today amicably terminated their 24-Year Production Sharing Contract (PSC) relationship.”
The development comes over two months after Addax Petroleum Development Nigeria transferred four major oil mining leases (OMLs) to NNPC, after withdrawing from the assets.
Both companies signed a memorandum of understanding (MoU) on the transfer, settlement, and exit agreement (TSEA).
In April 2021, the defunct Department of Petroleum Resources (DPR) rescinded the four Addax licences over poor development of the assets but three weeks later, President Muhammadu Buhari restored the licences.
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