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Addax OML License Saga: The Real Facts - Politics - Nairaland

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Addax OML License Saga: The Real Facts by stephanie11: 3:06am On Apr 27
In 1998, the NNPC entered into a 20-year PSC (Production Sharing Contract) in respect of certain oil mining leases (OMLs) with Addax Petroleum, a company listed on the Toronto Stock Exchange (TSX). The PSC was subsequently extended for a further four years, until 2022. The assets were OMLs 123, 124, 126 and 137.

Under the PSC, Addax fully funded and operated the development of the OMLs, with profit shared between Addax and NNPC. From 1998 until 2009, Addax increased production in these OMLs to about 130,000 bopd. In 2009, Sinopec (a Chinese state-owned company) purchased Addax Petroleum. As a result, Sinopec obtained the rights to these assets.

No payments were made to the Federal Government during the purchase by either party. However, in recent years, there have been no new investments in the assets, and by 2021, production had declined to 25,000 bopd. This led to a significant reduction in revenue accruing to Government. In addition, large gas resources in the assets remain undeveloped, and excess gas has been continuously flared to the atmosphere, contrary to FGN policy and best-practice and international environmental practice.

Since 2017, Sinopec has attempted, by a private sales process, to divest its rights in the PSCs (which are due to expire in July 2022) to a third party of Sinopec’s choice. In March 2021, Mr. President via DPR announced the revocation of the PSC rights to Sinopec, and an assignment of the rights to an indigenous consortium of Kaztec Engineering Limited and Salvic Petroleum Resources.

As part of the assignment, the new consortium are required to:

a. Operate the OMLs under a PSC with NNPC

b. Pay a Good and Valuable Consideration (GVC) of US$ 340 m at the commencement of the PSC

c. Develop the significant oil resources which have been lying fallow, and ramp up production

d. Commence development of 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

e. Ramp up investment in the OMLs so that production revenues, royalties and taxes to the Government are exponentially increased, in addition to the upfront payment of GVC.

The new operating consortium has been carefully chosen by Government for their familiarity with the assets. Kaztec, one of the leading indigenous EPIC-M companies with vast experience in offshore and onshore petroleum E&P, has collaborated with the previous operator on the assets for many years. The essence therefore is to ensure a seamless transition of operations with no disruptions in production or loss of revenue to the Government.

The choice of consortium is also in the accordance with the Nigerian Oil and Gas Industry Content Development (Local Content) Act which was enacted in 2010 to promote indigenous operation of Nigeria’s oil and gas assets. Under the Act, seasoned Nigerian independent operators like Kaztec and Salvic are to be given first consideration in the award of oil blocks and oil field licenses.

The consortium intends to maximise the potential of the assets to ensure that the Government and people of Nigeria reap their full benefits against the backdrop of the ongoing Energy Transition. In addition to optimizing production, the Consortium intends to deepen relationships with local communities, boost local content in all its ramifications and increase the employment and training of Nigerians, directly and indirectly.

At the urging of DPR, the Consortium has engaged with the previous operator, to ensure a smooth and amicable transition of operations at the assets. The DPR also directed that Addax and the new Consortium engage in an amicable resolution of all issues including a commercial settlement if needed. These discussions between the new Consortium and Addax commenced in April 2021.

The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets. Nigeria and China continue to enjoy cordial economic, political and social ties, and will cooperate to ensure the mutual development of their countries.
https://politicsnigeria.com/addax-oml-license-saga-the-real-facts/

Re: Addax OML License Saga: The Real Facts by Yankee101: 5:04am On Apr 27
You cannot conquer a strong man without help from within his household

7 Likes

Re: Addax OML License Saga: The Real Facts by MANNABBQGRILLS: 5:05am On Apr 27
From 1998 until 2009, Addax increased production in these OMLs to about 130,000 bopd.

........and by 2021, production had declined to 25,000 bopd


The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.

tuoyoojo:

But this was something that would could have braced easily if we had prepared for it during the time of plenty
Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

Meanwhile,
The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets.

3 Likes 2 Shares

Re: Addax OML License Saga: The Real Facts by vampiresdiary(m): 5:07am On Apr 27
Ok
Re: Addax OML License Saga: The Real Facts by sowilli: 5:08am On Apr 27
But the president has asked has reversed the decision by dpr. How can license be revoked and re-awarded immediately without any competitive bidding process?

5 Likes

Re: Addax OML License Saga: The Real Facts by markidoo(m): 5:11am On Apr 27
Chai
Re: Addax OML License Saga: The Real Facts by cardoctor(m): 5:12am On Apr 27
B
Re: Addax OML License Saga: The Real Facts by free2ryhme: 5:20am On Apr 27
stephanie11:

https://politicsnigeria.com/addax-oml-license-saga-the-real-facts/

if una like make una finish this country na una sabi
Re: Addax OML License Saga: The Real Facts by helinues: 5:26am On Apr 27
Still one side of the story in Phil Collins's voice

2 Likes

Re: Addax OML License Saga: The Real Facts by nautybride: 5:26am On Apr 27
In short, Nigeria is not gaining money from both sides anymore.
Re: Addax OML License Saga: The Real Facts by Stalwert: 5:28am On Apr 27
Proactive approach to governance is best.
Re: Addax OML License Saga: The Real Facts by ruggedtimi(m): 5:52am On Apr 27
Okay
Re: Addax OML License Saga: The Real Facts by Futurecryptoo: 5:57am On Apr 27
.
Re: Addax OML License Saga: The Real Facts by Nwakannaya1: 6:00am On Apr 27
MANNABBQGRILLS:





The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.


Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

Meanwhile,
The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets.

This can't be coming from a BMC...

1 Like

Re: Addax OML License Saga: The Real Facts by Akamariner(m): 6:26am On Apr 27
Hmmn....
50million email available for 15k.
Re: Addax OML License Saga: The Real Facts by Redoil: 6:37am On Apr 27
Nwakannaya1:


This can't be coming from a BMC...
which means bmc are not smart
Re: Addax OML License Saga: The Real Facts by Seniorwriter(m): 7:04am On Apr 27
So much lopsidedness in our country and economics.
Re: Addax OML License Saga: The Real Facts by eduj(m): 7:11am On Apr 27
Nwakannaya1:


This can't be coming from a BMC...
You don't get it,that reprobate is blaming Gej even as his owner buhari has stayed for 6 years in power now

2 Likes

Re: Addax OML License Saga: The Real Facts by DesChyko(m): 7:20am On Apr 27
MANNABBQGRILLS:

The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

This article is clearly talking about the mismanagement of an oil field now unlike how it was properly managed before 2009. But you've managed to twist it into an APC vs PDP narrative. And it's this APC currently in power (for just six years) that you are glorifying. Wow!

In the face of the many trubulations and insecurity Nigeria is undergoing now, you actually have the effontery to say "NEVER AGAIN will our nation be that unfortunate" . Which misfortune is worse than not being sure of tomorrow? See how people are living in fear all over. They can't even go about their businesses freely.

Nah only God go help BMC.

2 Likes

Re: Addax OML License Saga: The Real Facts by afroxyz: 8:26am On Apr 27
MANNABBQGRILLS:





The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.


Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

Meanwhile,
The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets.

What does the production of barrels per day have to do with the looting money in excess crude account? Stop misleading people on a topic you know nothing about

1 Like

Re: Addax OML License Saga: The Real Facts by sylve11: 8:43am On Apr 27
I will read this In no hurry. I doubt if it's actually the fact, considering how truth has become so expensive. cool
Re: Addax OML License Saga: The Real Facts by dbonks(m): 8:46am On Apr 27
MANNABBQGRILLS:





The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.


Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

Meanwhile,
The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets.


Sometimes your sentiments and emotions does not allow you ask some critical questions:
When did barrel per day production fall astronomically like that.
What is the guarantee that, the new consertium which according to the news has been working with ADDAX over the years would be able to shore up production at least to meet up with what prevailed in 2009 to ensure increased revenue inflow?
What is the fate of those Nigerians that have been in the employ of ADDAX over the years? Is there any concrete plan to capture them, incase the new consertium decides to downsize for the mean time pending when things returns to normalcy, or are we going to witness another case of innocent Nigerians going to be thrown out of job to join the already saturated labour market? Time will tell.
We are all here, don't come here tomorrow to tell us how opposition elements didn't allow the new consertium to function effectively, hence there in ability to reck in revenue to government coffers.
Re: Addax OML License Saga: The Real Facts by Ojiofor: 9:28am On Apr 27
MANNABBQGRILLS:





The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.


Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

Meanwhile,
The DPR should be commended for proactively taking concrete steps to boost the revenue accruing to the Government from these underperforming assets.

Buhari government have borrowed more money than Nigeria ever made from crude oil from 1999 to 2015.
Re: Addax OML License Saga: The Real Facts by aminulive: 9:40am On Apr 27
This is very good. Now the real truth is coming out.......the government made the right move
Re: Addax OML License Saga: The Real Facts by AlphaSentinel: 9:47am On Apr 27
Why was Addax not making use of the assets?

The government only gave it to people that can use it and generate much needed revenue. Kaztec is actually a good choice, highly professional guys

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