NNPC Acquires Addax Petroleum, Expects More Investments on Assets

Nigeria’s energy conglomerate, Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it has fulfilled all closing obligations relating to the acquisition and transfer of assets of Addax Petroleum Development Company Limited.

This came as NNPCL promised to ensure that it facilitates investments in Addax assets with a view to boosting the energy economy in the country.

The termination of the relationship between NNPCL and Addax Petroleum Development (Nigeria) Limited is coming after a 24-year Production Sharing Contract (PSC) of operations with the energy conglomerate.

To bring about a seamless kick-off of activities, the NNPCL said it has constituted a special purpose vehicle, Antan Producing Limited with interim management to take over Oil blocs OMLs 123/124 & 126/137, hitherto operated by the concessioned oil firm.

Investors King reports that after both organisations had fulfilled necessary transfer obligations, the NNPCL Group Chief Executive Officer, Mele Kyari, signed the closing documents on behalf of the company, while the outgoing Managing Director of Addax Petroleum, Yonghong Chen, signed for his company at the NNPC headquarters office in Abuja.

It could be recalled that in November 2022, Nigeria’s energy company had signed a settlement and exit agreement with Sinopec’s Addax Petroleum Development (Nigeria) to end its four major oil mining blocks in the country.

To this end, Addax would no longer be the PSC contractor for the OML 123/124 and OMLs 126/137.

A statement issued by NNPCL Chief Corporate Communications Officer, Garba Deen Muhammad, said the closing obligations were done three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC Oil blocks.

Muhammed promised that NNPC would fetch more investments on the assets and appoint a competent replacement PSC contractor to manage it.

He added that the NNPC Limited would continue to remain the Concessionaire of the assets in line with extant laws and regulations, adding that exit negotiations and formalities were concluded and that the energy conglomerate in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC have agreed on the clean and amicable exit for Addax.

The NNPC Communication Officer added that the company would resolve all the PSC contractual issues, including litigations that culminated in the execution of a TSEA on the 1st of November 2022.

He said NNPCL has announced the appointment of the Transition Team lead, Mr. Sagiru Jajere, as the Managing Director of Antan Producing Limited.

Before his appointment, Jaiere was the Head of PSC Investment Management at the NNPC Upstream Investment Management Services (NUIMS).

Jaiere, according to Muhammed, would be aided by a team of highly competent personnel with in-depth knowledge of the peculiarities of the Addax Assets.

NNPCL maintained that much-needed investments would be facilitated to the over-taken Assets.

The company also said it would create value for the PSC and prudently conduct petroleum activities in it.