President Muhammadu Buhari has approved the restoration of leases of OMLs 123, 124, 126 and 137 to the Nigerian National Petroleum Corporation (NNPC).
The leases which belongs to the Federation had earlier been revoked on March 30, 2021.
The presidency who made this known in a statement, said the restoration will be in production sharing contract with Addax Petroleum, a company wholly owned by Government of the People’s Republic of China, on the blocks.
Presidency said this was “in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.”
Having approved the restoration, the president directed the Department of Petroleum Resources (DPR) to retract the letter of revocation of the leases and also enjoined 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 statement read further, “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.”