FG to gain $340m from new operator of Addax OML

The federal government is set to derive a sum of $340million from the new operator of the Addax OML License, according to reports.

Recall that that the Directorate of Petroleum Resources (DPR) had recently revoked the four assets of Addax Petroleum Exploration Nigeria Ltd., namely OMLs 123, 124, 126 and 137, due to the non-development of the assets by the company. Following this decision, a committee set up by President Muhammadu Buhari to investigate Addax breach of contract submitted a report, accusing the petroleum company of “economic waste.”

The committee led by a former senator, Magnus Abe, said $1 billion had been invested in the contract but Addax Petroleum called it off over an issue that was totally unrelated to the project. The action put over 3000 Nigerians out of work, the committee said.

Already, as part of the assignment of the assets, the new consortium has committed to pay $340 million at the commencement of the Production Sharing Contract (PSC) to the federal government, a sum that will come handy for the government at this time.

It will also redevelop the significant oil resources which have been lying fallow, and ramp up production, as well as the large gas resources within 24 months, both for the domestic market and for export, in line with the government’s aspirations for the gas industry.

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