TheCable

The Department of Petroleum Resources (DPR) has set up a committee to evaluate the revoked oil blocks of Addax Petroleum Exploration Nigeria Ltd in preparation for the formal hand over of the assets to new operators.

The petroleum regulatory agency had revoked four production sharing contracts (PSCs) operated by Addax Petroleum over non-development of the assets for several years.

The PSCs consist of oil mining licences (OMLs) 123, 124, 126 and 137.

“The first reason for a revocation is when you discover that the asset is not being developed according to the business guidelines, because it is economic sabotage,” Sarki Auwalu, director of DPR, had said.

“Addax refused to develop the assets and Addax was, therefore, not operating the assets.”

In a statement issued by Paul Osu, DPR’s head of public affairs, on Thursday in Lagos, said the evaluation was in preparation for the formal hand over of the assets to Kaztec Engineering Limited/Salvic Petroleum Resources Limited (Kaztech/Salvic Consortium) — its new operators.

The statement quoted Auwalu as saying awarding the licences to a new consortium is a step in the right direction as it signifies the federal government’s commitment to reactivating all moribund oil and gas support facilities across the country.

He expressed optimism that it would help to create job opportunities for Nigerians and stimulate the economy.

“Auwalu urged the committee to evaluate the current status (As-is) of the revoked assets, including liabilities post revocation, in order to facilitate takeover of the assets by the newly appointed operators,” the statement read.

“He advised the committee members to discharge the responsibility entrusted on them by the nation with all sense of patriotism and dedication to national interest.

“According to him, the committee has one week to conclude the assignment.”