President Muhammadu Buhari has ordered the Department of Petroleum Resources (DPR) to withdraw the letter of revocation of four oil blocks earlier issued to Addax Petroleum, a company wholly owned by Government of the People’s Republic of China.
The President also approved the restoration of all the OMLs 123, 124, 126 and 137 earlier revoked to the Nigeria National Petroleum Corporation (NNPC) which has a production sharing contract with Addax Petroleum.
The Senior Special Assistant to the President (Media and Publicity), Garba Shehu, a statement on Friday said the president made this decision in order to ensure fairness and stable business environment.
Shehu said, “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 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.
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“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.”
He added, “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.
According to him, the restoration of the blocks to NNPC will boost the organisation’s portfolio, enable the corporation to boost its crude oil production and in turn increase the revenue it generates to the Federation Account,
