TheCable

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

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

Mele Kyari, group chief executive officer (GCEO), NNPC Limited, 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.

The signing ceremony marked the termination of the 24-year PSC relationship between both oil firms.

BREAKING: @nnpclimited Takes Over #Addax Petroleum's PSC Assets

After fulfilling closing obligations, @nnpclimited and Addax Petroleum Development (Nigeria) Ltd today amicably terminated their 24-Year Production Sharing Contract (PSC) relationship. pic.twitter.com/VniYKAkqFU

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— NNPC Limited (@nnpclimited) January 31, 2023

The development comes over two months after Addax Petroleum 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.