Business

DPR To Transfer Revoked Oil Blocks To New Operators

Department of Petroleum Resources (DPR) has set up a committee to assess the revoked oil blocks of Addax Petroleum Exploration Nigeria Ltd ahead of the formal transfer of the assets to new operators.

DPR had revoked four production sharing contracts (PSCs) operated by Addax Petroleum over non-development of the assets for several years.

The PSCs consist of oil mining licences (OMLs) 123, 124, 126 and 137.

“The first reason for a revocation is when you discover that the asset is not being developed according to the business guidelines, because it is economic sabotage. Sarki Auwalu, director of DPR, had said.

“Addax refused to develop the assets and Addax was, therefore, not operating the assets,” Sarki Auwalu, director of DPR, had said.

DPR To Transfer Revoked Oil Blocks To New Operators

A statement issued on Thursday by the DPR’s head of public affairs, Paul Osu, said the assessment is in preparation for the formal transfer of the assets to Kaztec Engineering Limited/Salvic Petroleum Resources Limited (Kaztech/Salvic Consortium) — its new operators.

The statement quoted Auwalu as saying awarding the licences to a new consortium is a step in the right direction as it signifies the federal government’s commitment to reactivating all moribund oil and gas support facilities across the country.

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