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Nigeria returns Addax's revoked oilfields, overriding regulator

Published 23/04/2021, 18:03
© Reuters.

By Felix Onuah
ABUJA, April 23 (Reuters) - Nigeria's president restored
four oilfield licences to Addax, a company controlled by China's
Sinopec, his office said in a statement, overruling a previous
revocation from the country's petroleum regulator.
The restoration of the fields roughly three weeks after the
Department of Petroleum Resources rescinded them was aimed to
ensure "commitment to the rule of law, fairness and enabling a
stable business climate for investment," President Muhammadu
Buhari's office said in a statement.
"This development reaffirms the commitment of President
Buhari to the rule of law and sanctity of contracts," the
statement said. The statement also said it would boost Nigeria's
long-term oil production.
It said the fields would return to the original production
sharing contracts between state oil company NNPC and Addax.
Revoking licences for producing fields is an unusual move,
made more so by the fact that DPR re-awarded the fields almost
immediately to other companies, Kaztec Engineering Limited and
Salvic Petroleum Resources Limited. Of the assets in question, OML 123, OML 124, OML 126 and OML
137, three have producing fields, according to Addax's website.
DPR director Sarki Auwalu said at the time that Addax was
not developing the assets sufficiently. Buhari directed NNPC to
resolve any of remaining issues with Addax using exisiting
production sharing contracts.

(writing by Libby George, editing by Louise Heavens)

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