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New operating consortium promises Nigeria better value from 4 oil assets
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By Innocent Anaba
Kaztec Engineering Limited and Salvic Petroleum Resources consortium have promised to offer Nigeria better value in terms of increased revenue, local content boost, and more employment opportunity as they take over the operatorship of the Oil Mining Leases (OMLs) 123, 124, 126 and 137 previously operated by Addax Petroleum.
The new partners also disclosed that they have commenced engagement with Addax to ensure a smooth and amicable transition of operations at the assets.
The Kaztec/Salvic consortium said that the Department of Petroleum Resources, DPR, deserved to be commended for doing due diligence and following relevant laws in making them the choice operators of the assets.
ADDAX OML LICENSE IMPASSE: DPR’s action will boost government revenue – Group
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In the face of the seeming uncertainty surrounding the revocation, restoration of Addax OML License, and the report of the Committee set up by President Muhammadu Buhari on the issue, which indicted Addax for wasting millions of dollars, a Civil Society Organisation, Good Governance Advocates has commended the Directorate of Petroleum Resources (DPR) for taking concrete steps to boost the revenue accruing to the Government in underperforming assets.
In a statement signed by its National President, Kema Maxwell, it noted that in choosing a new operating consortium to manage the OMLs, DPR carefully opted for an operator that is familiar with the revoked assets, and saving the country a huge economic loss.
By Perry Okolugbo
In 1998, the Nigerian National Petroleum Corporation (NNPC) entered into a 20-year Production Sharing Contract (PSC) in respect of certain oil mining leases (OMLs) with Addax Petroleum, a company listed on the Toronto Stock Exchange (TSX). The PSC was subsequently extended for a further four years, until 2022. The assets were OMLs 123, 124, 126 and 137.
Under the PSC, Addax fully funded and operated the development of the OMLs, with profit shared between Addax and NNPC. From 1998 until 2009, Addax increased production in these OMLs to about 130,000 bpd. In 2009, Sinopec (a Chinese state-owned company) purchased Addax Petroleum. As a result, Sinopec obtained the rights to these assets.
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