In line with the current administration’s commitment to the rule of law, fairness, and enabling a stable business climate for investment, President Muhammadu Buhari has approved the restoration of the leases on OMLs 123, 124, 126, and 137 to Nigeria
Garba Shehu Senior Special Assistant to the President (Media & Publicity) made this known in a statement he issued and signed on the 23rd of April, 2021.
The full text of the statement reads in part.
National Petroleum Corporation, NNPC which is in a production sharing contract with Addax Petroleum, a company wholly owned by the Government of the People’s Republic of China on the blocks. The leases belonging to the Federation were revoked on March 30, 2021.
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 organization’s portfolio, thereby making the Corporation, in the long run, boost its crude oil production and in turn increase the revenue it generates to the Federation Account.