The protracted dispute on oil mining leases (OMLs) 123/124 and 126/137, operated by Addax Petroleum Nigeria Limited, has been resolved paving the way for much-needed investment and growth of the oil blocks.
A statement by the spokesman of the national oil company, NNPC Limited, Garba Deen Muhammad, said the Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between NNPC and Ashland and terminated after 25 years. Subsequently, NNPC signed another PSC with Addax in 1998 on the blocks and operated through Addax Petroleum for another 24 years.
According to Muhammad, In 2021, issues around the revocation of the licences were reconsidered and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) advised that the assets be returned to the Concessionaires (NNPC Limited) to ensure clean and amicable exit for Addax.
On 25th January 2022, NNPC Limited commenced formal engagements with Addax and NUPRC; followed by series of meetings to ensure a swift close-out of the exit discussions and formalities. These discussions eventually paved way for the preparation and signing of a Transfer, Settlement and Exit Agreement (TSEA).
In his remarks at the close-out and signing ceremony, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Mele Kolo Kyari, charged the transition management team to hit the ground running towards restoration and fulfillment of the promise of the assets. He promised that re-adjustment will be swift and efficient, in order to extract optimum value from the assets, and to deliver maximum value to shareholders.
The reconciliation meeting yesterday led to call off of strike by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Addax Petroleum Development Nigeria branch, which was announced by the Group General Manager, National Petroleum Investment Management Services, a subsidiary of NNPCL, Bala Wunti, via his Twitter handle on Monday night. “Sequel to several stakeholder engagements with NNPC Limited, the industrial action embarked upon by Addax PENGASSAN members has been called off with immediate effect and work has resumed fully,” Wunti said.
PENGASSAN Addax branch had been on strike since last week over alleged anti-labour practices by the oil company, citing the inability of the Federal Government and management of the company to address their grievances and payment of their exit packages.
Besides, the striking oil workers said the strike became imperative due to the fact that Addax had commenced plans to exit Nigeria.
With the resolution, the oil blocks which currently produce about 22,000 barrels daily will continue operation seamlessly.
