NNPC takes over operation of Production Sharing Contract (PSC) for 4 oil wells from Addax

The Nigerian National Petroleum Company Ltd (NNPC) said it has taken over the operation of the Production Sharing Contract (PSC) for four oil wells from Addax Petroleum Development Nigeria Ltd.

In a statement on Tuesday, NNPC said it amicably terminated Addax 24-year PSC relationship.

It said three months after the execution of the Addax Transfer, Settlement, and Exit Agreement (ATSEA) for the PSC oil blocks, OMLs 123/124 and 126/137, operated by Addax all closing obligations have been concluded and the assets have been transferred to the Concessionaire, NNPC Limited.

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“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 an interim basis as a first step and subsequently appoint a competent replacement PSC contractor while NNPC continues to remain the Concessionaire,” it noted.

While the TSEA was signed in November 2022, the transfer of the oil wells to NNPC took place on Tuesday, January 31, 2023.

NNPC Ltd has also appointed the Transition Team lead, Mr Sagiru Jajere, as the Managing Director of Antan Producing Ltd.

Addax and NNPC had a long-running battle over the operation before the latest amicable settlement.

Daily Trust