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DPR Withdraws Four Unused OML Belonging To Addax

DPR Withdraws Four Unused OML Belonging To Addax

The Department of Petroleum Resources (DPR) has revoked four Oil Mining Licences (OML) belonging to Addax Petroleum citing non-development of the assets for several years.

According to DPR, the withdrawn licenses are OML 123, 124, 126 and 137.

The Director/Chief Executive Officer of DPR, Sarki Auwalu, while speaking to journalists on Tuesday, said the revoked licenses have been awarded to Kaztec and Salvic Consortium after following due process based on the same terms and conditions given to Addax.

He stated that the agency took the decision in order to to address production and revenue losses caused by the neglect of the assets.

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According to him, over 50 per cent of assets remain undeveloped after several years, contrary to the provisions in the Petroleum Act.

Auwalu said, “OML 137 holds gas reserves of more than three trillion trillion cubic feet, adding that reserves have remained flat over the years without any form of development.

Addax Petroleum had declared a force majeure on its operations in 2015, affecting the Antan project.

According to him, Addax is found culpable for significant gas flaring even though it never supplied gas to the domestic market.

Auwalu also noted that crude production from the revoked assets has been declining over the years due to lack of investment by the oil company.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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