Buhari Restores Four Oil-Mining Leases To NNPC

President Muhammadu Buhari has approved the restoration of the
leases on Oil Mining License (OML) 123, 124, 126 and 137 to the
Nigerian National Petroleum Corporation (NNPC).

The assets were previously operated by Addax Petroleum
Exploration Nigeria Limited, a company owned by the Government of
the People’s Republic of China.

A statement by Senior Special Assistant to the President on
Media and Publicity, Mallam Garba Shehu, said the leases, which
belong to the Federation, had been revoked on the 30th March,
2021.

According to the statement, Presidential action would help the
NNPC to increase its production quota, thereby generating more
revenue for the Federation Account.

“In line with the current administration’s commitment to the
rule of law, fairness and enabling a stable business climate for
investment, President Muhammadu Buhari has approved the restoration
of the leases on OMLs 123, 124, 126 and 137 to the Nigeria National
Petroleum Corporation, NNPC which is in production sharing contract
with Addax Petroleum, a company wholly owned by Government of the
People’s Republic of China on the blocks. The leases belonging to
the Federation were revoked on March 30, 2021.

“This development reaffirms the commitment of President Buhari
to the rule of law and sanctity of contracts.

“While directing the Department of Petroleum Resources, DPR to
retract the letter of revocation of the leases, the President also
directed NNPC to utilize contractual provisions to resolve issues
in line with the extant provisions of the Production Sharing
Contract arrangement between NNPC and Addax.

“The restoration of the blocks to NNPC will boost the
organisation’s portfolio, thereby making the Corporation to, in the
long run, boost its crude oil production and in turn increase the
revenue it generates to the Federation Account,” the statement
reads.

The leases were revoked in March as a result of the
non-development of the assets by Addax Petroleum.

President Muhammadu Buhari has approved the restoration of the
leases on Oil Mining License (OML) 123, 124, 126 and 137 to the
Nigerian National Petroleum Corporation (NNPC).

The assets were previously operated by Addax Petroleum
Exploration Nigeria Limited, a company owned by the Government of
the People’s Republic of China.

A statement by Senior Special Assistant to the President on
Media and Publicity, Mallam Garba Shehu, said the leases, which
belong to the Federation, had been revoked on the 30th March,
2021.

According to the statement, Presidential action would help the
NNPC to increase its production quota, thereby generating more
revenue for the Federation Account.

“In line with the current administration’s commitment to the
rule of law, fairness and enabling a stable business climate for
investment, President Muhammadu Buhari has approved the restoration
of the leases on OMLs 123, 124, 126 and 137 to the Nigeria National
Petroleum Corporation, NNPC which is in production sharing contract
with Addax Petroleum, a company wholly owned by Government of the
People’s Republic of China on the blocks. The leases belonging to
the Federation were revoked on March 30, 2021.

“This development reaffirms the commitment of President Buhari
to the rule of law and sanctity of contracts.

“While directing the Department of Petroleum Resources, DPR to
retract the letter of revocation of the leases, the President also
directed NNPC to utilize contractual provisions to resolve issues
in line with the extant provisions of the Production Sharing
Contract arrangement between NNPC and Addax.

“The restoration of the blocks to NNPC will boost the
organisation’s portfolio, thereby making the Corporation to, in the
long run, boost its crude oil production and in turn increase the
revenue it generates to the Federation Account,” the statement
reads.

The leases were revoked in March as a result of the
non-development of the assets by Addax Petroleum.