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.
A presidential spokesman Garba Shehu said on Friday that the restoration was in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
Garba, who recalled that the leases belonging to the Federation were revoked on March 30, 2021, said the current development reaffirmed the commitment of President Buhari to the rule of law and sanctity of contracts.
The President, who directed the Department of Petroleum Resources (DPR) to retract the letter of revocation of the leases, 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 presidential spokesman said the restoration of the blocks to NNPC will boost the organisation’s portfolio, thereby making the Corporation to, in the long run, boost its crude oil production and in turn increase the revenue it generates to the Federation Account.