President Muhammadu Buhari has approved the restoration of the leases on OMLs 123, 124, 126 and 137 to the Nigeria National Petroleum Corporation, NNPC, which is in production sharing contract with Addax Petroleum, a company wholly owned by Government of the People’s Republic of China on the blocks.
The decision, it was said, was in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
According to a statement by the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, the leases belonging to the federation were revoked on March 30, 2021.
This development, he said, reaffirmed the commitment of the president to the rule of law and sanctity of contracts.
While directing the Department of Petroleum Resources, DPR, to retract the letter of revocation of the leases, the president was said to have also directed NNPC to utilise contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between NNPC and Addax.
The restoration of the blocks to NNPC will boost the organisation’s portfolio, thereby making the corporation to, in the long run, boost its crude oil production and in turn increase the revenue it generates to the Federation Account.
