The Nigerian National Petroleum Company (NNPC) Limited has taken over Addax Petroleum’s production sharing contract (PSC) assets, owned by Sinopec, a state-owned Chinese firm.
According to the tweet on the NNPC page on 31 January, 2023, the documents were signed in Abuja.
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.
The signing ceremony marked the termination of the 24-year PSC relationship between both oil firms.
After exiting from the assets, the development comes over two months after Addax Petroleum Development Nigeria transferred four major oil mining leases (OMLs) to the national oil company.
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 licenses over poor development of the assets but three weeks later, President Muhammadu Buhari restored the licenses.