At the “Final Close-Out of the Addax Transfer, Settlement and Exit Agreement” conducted at the NNPC Ltd’s Towers in Abuja, Nigeria, the Nigerian National Petroleum Company Ltd (NNPCL) terminated the Production Sharing Contract with Addax Petroleum on four oil blocks.

According to NNPC Upstream Investment Management Services (NUIMS) Chief Upstream Investment Officer (CUIO), Bala Wunti, Addax transfers operatorship of OMLs 123/124 and 126/137 to Antan Producing Limited on an interim basis through the transition period until the emplacement of a substantive replacement PSC per the President’s directive effective January 31, 2023, with the closing obligations by the parties fulfilled.

He said: “Out of these four OMLCs, two were producing. Since taking over these assets, its production has grown from 6000 barrels to 16,000 barrels combined from the two assets and we have recorded zero downtime since then. This wouldn’t have been possible without the collaborative support of the Addax management.”

Mele Kyari, Group Chief Executive Officer of NNPC Ltd., said during the occasion that the peaceful resolution sends a strong signal to the rest of the globe that Nigeria is ready to welcome investments in the oil and gas industry.

”We believe this closure will also further and soften the already cordial relationship between the People’s Republic of China and Nigeria,” he said.

Also speaking, the outgoing Managing Director of Addax, Yonghong Cheng, said the agreement has “achieved a win-win outcome.”

He added that “This demonstrates the power of cooperation, which has resulted in the restoration and the strengthening of the relationship between NNPC and Addax on one hand and our parent countries, Nigeria and China, on the other hand.”

“We have achieved this important milestone. This is good for all of us. I will like to thank His Excellency, President Muhammadu Buhari, for his leadership on this issue and his support for foreign investors and also appreciate the management of NNPC Ltd and the leadership of the able GCEO, Mele Kyari, for his commitment and focus towards achieving this.”