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FG Evaluates Addax Petroleum’s Assets

Addax Petroleum Exploration Nigeria Limited

  • To hand over assets to new owners

Following the Federal Government’s revocation of the Production Sharing Contracts (PSCs) on four assets belonging to Addax Petroleum Exploration Nigeria Limited (APENL), the Department of Petroleum Resources (DPR), has commenced the processes leading to the handing over of the facilities to new owners.

DPR said yesterday that a committee had already been set up in preparations for the formal ceremony culminating in the takeover by the new operators, Kaztech/Slavic Consortium.

A statement by the Head, Public Affairs of the agency, Mr. Paul Osu, said the committee was inaugurated in Abuja on Wednesday by the Director of the DPR, Mr. Sarki Auwalu.

The DPR director stated that the move was in fulfilment of the federal government’s commitment to reactivating all moribund oil and gas support facilities.

According to him, it is also aimed at stimulating the economy and creating job opportunities for Nigerians.

Auwalu charged the committee to evaluate the current status of the revoked assets, including liabilities post-revocation, in order to facilitate the takeover of the assets by the newly-appointed operators of the assets.

He advised the committee to discharge its mandate with all sense of patriotism and dedication to the national interest. He gave the panel one week to conclude the assignment.

The DPR recently revoked the four assets of Addax Petroleum Exploration Nigeria limited namely Oil Mining Leases (OMLs) 123, 124, 126 and 137, due to the non-development of the assets by the company.

Auwalu had said that the government had awarded the assets to KEL/Slavic consortium to consist of two Nigerian-owned independents with the approval of President Muhammadu Buhari.

The director added that the government’s action was prompted by Addax’s failure to operate the facilities and thereby not adding value to the assets, a development he likened to sabotage.

He said over 50 per cent of the assets under Addax’s control was undeveloped and was not being operated

in a vigorous manner and that constitutes revenue loss to the government.

Auwalu added that the average reserved assets remained flat underlining the fact that activities around the oil blocs had not been improved upon.

He also said investigation had shown that crude oil production around the oil blocs had been declining due to inadequate investment, adding that Addax was never known to have supplied gas to the domestic gas market.

It is the outcome of the regular interactions that have led to this action which makes it necessary for us to recommend to the government to take this necessary action. The licence has been awarded to a new consortium that will assume the new assets on the same terms,

he had stated.

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