President Muhammadu Buhari
Certainly, Nigeria needs a partner like China and the revocation of the Addax leases would have resulted in serious reputational damage to the country, with possible unintended but dire diplomatic consequences. Kudos Mr. President for rising up to the occasion!
The decision by President Muhammadu Buhari to overrule the Department of Petroleum Resources (DPR) on the revocation of Addax Petroleum’s Oil Mining Leases (OMLs) 123, 124, 126 and 137 is quite instructive and significant in the context of the interplay of variegated interests in the determination of the bigger picture, as exemplified by the survival of the national economy. It is quite instructive because it has shown that for Buhari, personal interest is neither here nor there, absolutely having no place in this critical business consideration that has implications for national economic sustenance. It is also remarkably significant because the approval has bolstered the contemplation of n
Ismaila Shittu
To build virile, sustainable national institutions, uphold due process in diverse arenas and grow the nation’s economy, the sanctity of contracts must be respected. This is the pathway through which Nigeria can be taken seriously by international investors the country cherishes, as well as by other nations.
An awareness of this necessity clearly must have informed President Muhammadu Buhari’s enlightened intervention to reverse the misapplication of authority and miscarriage of justice in the matter of needless revocation of oil leases operated by Addax Petroleum Exploration Nigeria Ltd.
Addax Petroleum was established in 1994 and since August 2009 has been a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide.
Group Managing Director of SEEPCO, Mr Tony-Chukwueke with Group Managing Director of NNPC, Mallam Mele Kyari at signing of OML 143 Gas Development Deal
The Nigerian National Petroleum Corporation (NNPC) began its week with the task of normalising the supply of Premium Motor Spirit (PMS) at different filling stations in the country especially the FCT following the strike embarked upon by Petroleum Tanker Drivers (PTD) over remuneration.
The normalisation started with the corporation increasing the daily supply of petrol across the country from 550 trucks to 1,661 trucks to combat the buildup of fuel queues in some parts of the country.
It would be recalled that the intervention of Malam Mele Kyari, NNPC Group Managing Director, led to the suspension of the strike by the PTD for one week.
Deji Elumuye and Emmanuel Addeh in Abuja
President Muhammadu Buhari yesterday approved the restoration of the permits on Oil Mining Leases (OMLs) 123, 124, 126 and 137 to the Nigerian National Petroleum Corporation (NNPC) and, by extension, Addax Petroleum.
The Nigerian government, through the national oil company, had been in a Production Sharing Contract (PSC) with Addax Petroleum, a subsidiary of SINOPEC, the national oil company of People’s Republic of China, on these oil blocks.
PSC is a contractual arrangement for exploration and production of petroleum resources where the contractor undertakes all the financial, technical and operational risks associated with petroleum operation in return for a share of profit, after production cost, payment of royalty, and taxes. In this case, the assets are owned by the NNPC which brought in the contractor, Addax.