NNPC expands dominance of Nigerian oil sector, takes over Addax assets

Barely four months after acquiring OVH Energy Marketing (OVHEM) Limited, Nigerian National Petroleum Company Limited (NNPC), yesterday, announced takeover of Addax Petroleum Development (Nigeria) Limited’s production sharing contract assets.

Coming amid loggerhead between NNPC and Seplat over sale of ExxonMobil’s Mobil Producing Nigeria Unlimited (MPNU), the national oil company said Addax Petroleum Development (Nigeria) Limited was taken over “amicably,” terminating a 24-year contract relationship.

According to a statement signed by NNPC’s Chief Corporate Communications Officer, Garba Deen Muhammad, the takeover followed execution of the Addax Transfer, Settlement and Exit Agreement (ATSEA) for the PSC Oil blocks, OMLs 123/124 & 126/137.

Muhammad said all closing obligations were concluded and the assets have been transferred to the concessionaire, NNPC Limited.
“Consequently, NNPC has taken necessary steps to take over the assets and oversee a clean, amicable and speedy exit for Addax Petroleum Ltd., operate the asset on interim basis as a first step and subsequently appoint a competent replacement PSC contractor, while NNPC Limited continues to remain the concessionaire of the assets, in line with extant laws and regulations.

“Exit negotiations and formalities have been concluded and NNPC Ltd., in collaboration with the Office of the Attorney General of the Federation, NUPRC, NMDPRA, FIRS, EFCC, and the FCCPC, have agreed on clean and amicable exit for Addax by resolving all the PSC contractual issues, including litigations that culminated in the execution of a Transfer, Settlement, and Exit Agreement (TSEA) on November 1, 2022.”

He said with fulfilment of closing obligations by the parties and effective January 31, 2023, Addax transfers the operatorship of OMLs 123/124 and 126/137 to Antan Producing Limited on interim basis through the transition period, pending the emplacement of a substantive replacement PSC, in compliance with the directive of the President.