NNPC scrambles management team for recovered Addax assets
Sopuruchi Onwuka
Nigerian National Petroleum Company Limited (NNPCL) is working to minimize activity downtime at the oil block just recovered from Addax Petroleum after an exit settlement.
The company which is visibly shopping more assets to beef up operated production in the industry has set up a Transition Management Team to hurriedly begin operating the assets hosted in Oil Mining Licenses (OMLs) 123/124 and 136/137.
Spokesman of the national oil company, Mr Garba Deen Muhammed stated in a media release that the interim management for the assets was charged at a ceremony marking the formal relinquishment of the assets by Addax Petroleum to immediately bring the assets to optimum production.
He said the Group CEO of NNPC, Mallam Mele Kyari, charged the Transition Management Team to hit the ground running towards restoration and fulfillment of the promise of the Assets.
According to Mr Muhammad, the GCEO promised that readjustment on the management of the relinquished assets would be swift and efficient in order to extract optimum value and deliver maximum value to shareholders.
The Oracle Today reports that a close-out and signing ceremony for contract expiry and asset return was held to mark the formal termination of Production Sharing Contracts (PSCs) governing the operations of Addax Petroleum on the oil blocks in which the NNPC is the concessionaire.
The ceremony marked the resolution of outstanding issues in the protracted dispute on OMLs and paved way for much-needed investment and growth on the oil blocks.
According to NNPC, the PSC on the blocks was initially signed in 1973 between NNPC and Ashland and terminated after 25 years. Subsequently, NNPC signed another PSC with Addax in 1998 on the blocks and operated through Addax Petroleum for another 24yrs.
In 2021, issues around the revocation of the licences were reconsidered and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) advised that the assets be returned to the Concessionaires (NNPC Limited) to ensure clean and amicable exit for Addax.
On 25th January 2022, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by series of meetings to ensure a swift close-out of the exit discussions and formalities. These discussions eventually paved way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA).
