Buhari restores ownership of four OMLs to NNPC

President Muhammadu Buhari has restored ownership of four oil mining leases (OMLs) to the Nigerian National Petroleum Corporation, (NNPC).

In a statement on Friday, Garba Shehu, presidential spokesman, identified the licences as OMLs 123, 124, 126 and 137.

NNPC operates the licences in production sharing contract with Addax Petroleum, a company owned by China’s Sinopec Group.

On March 30, the Department of Petroleum Resources (DPR) revoked the four Addax licences over poor development of the assets.

Sarki Auwalu, DPR director, had said over 50 percent of the assets were underdeveloped, which he said cost the government lost revenue.

On Thursday, DPR set up a committee to evaluate the revoked oil blocks of Addax Petroleum in preparation for the formal hand over of the assets to new operators.

Shehu said the restoration of the licences is “in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment”.

He added that the restoration also reaffirms Buhari’s commitment to the rule of law and sanctity of contracts.

“While directing the Department of Petroleum Resources, DPR to retract the letter of revocation of the leases, the President 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 statement reads.

“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.”