NNPC Towers Abuja
By DAVID IORJA, Abuja –
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.
Senior Special Assistant to the President (Media & Publicity), Garba Shehu, who made this known in a statement on Friday, explained that the President’s decision was “in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
The leases belonging to the Federation were revoked on March 30, 2021.
According to Shehu, “this development reaffirms the commitment of President Buhari 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 also directed NNPC to utilize 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.