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 China on the blocks.
A State House statement says the approval is in line with the administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
Signed by the Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, the statement says the leases belonging to the federation were revoked at the end of last month.
The President, who has directed the Department of Petroleum Resources, DPR, to retrieve the letter of revocation of the leases, President directed the NNPC to utilise the contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between it and Addax.
The statement suggests that 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.