President Muhammadu Buhari has ordered the restoration of oil blocks earlier revoked by the government to the Nigerian National Petroleum Corporation (NNPC).
The leases on OMLs 123, 124, 126 and 137 to the 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, were revoked on March 30, 2021.
A statement issued by Garba Shehu, Senior Special Assistant to Buhari on Media and Publicity and obtained by PlatinumPost on Friday, said the decision to restore the oil blocks was in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
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“This development reaffirms the commitment of President Buhari to the rule of law and sanctity of contracts,” parts of the statement read.
While directing the Department of Petroleum Resources, DPR, to retract the letter of revocation of the leases, Buhari 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 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,” the statement added.