NNPC Takes Over Addax Petroleum PSC Assets

The Nigerian National Petroleum Company (NNPC) Limited says it has taken over ’s production sharing contract (PSC) assets.

NNPC Takes Over Addax Petroleum PSC Assets

Addax is owned by Sinopec, a state-owned Chinese firm.

The move followed the termination of the Production Sharing Contract (PSC) relationship between both organisations.

Mele Kyari, group chief executive officer (GCEO), and Yonghong Chen, outgoing managing director (MD), Addax, signed the closing documents on behalf of the two parties.

In a tweet on Tuesday, NNPC said the documents were signed in Abuja, on January 31, 2023.

“After fulfilling closing obligations, @nnpclimited and Development (Nigeria) Ltd today amicably terminated their 24-Year Production Sharing Contract (PSC) relationship,” the tweet read.

“GCEO @nnpclimited Mallam @MKKyari and Mr Yonghong Chen (Outgoing MD Addax) signed the closing documents at the #NNPCTowers on behalf of the two parties, to symbolise the amicable termination of the relationship.”

The development comes over two months after Development Nigeria transferred four major oil mining leases (OMLs) to the national oil company, after exiting from the assets.

Both parties signed a memorandum of understanding (MoU) on the transfer, settlement, and exit agreement (TSEA).

With the agreement, Addax ceased to be the PSC contractor for the four oil mining leases (OMLs) 123, 124, 126 and 137.

In April 2021, the defunct department of petroleum resources (DPR) revoked the four Addax licences over poor development of the assets but three weeks later, President Muhammadu Buhari restored the licences.

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