The Nigerian National Petroleum Corporation (NNPC), which is in a production sharing arrangement with Addax Petroleum, has had its leases on OMLs 123, 124, 126, and 137 restored by President Muhammadu Buhari.
The Chinese government owns Addax Petroleum entirely.
On March 30, 2021, the leases belonging to the federation were revoked.
In a statement issued on Friday in Abuja, Buhari’s aide, Malam Garba Shehu, confirmed the news.
The restoration of the OMLs, Shehu explained, was in line with the current administration’s commitment to the rule of law, justice, and a stable business environment for investment.
According to him, this progress reaffirms the Buhari administration’s adherence to the rule of law and contract sanctity.
According to him, Buhari directed the Department of Petroleum Resources (DPR) to retract the lease revocation document.
Buhari also instructed the NNPC to use contractual provisions to address problems in accordance with the existing provisions of the NNPC-Addax Production Sharing Deal.
“The restoration of the blocks to NNPC would improve the organization’s portfolio, causing the company to, in the long run, increase its crude oil output and, as a result, increase the revenue it receives to the Federation Account,” Shehu explained
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