Buhari Restores Ownership Of Oil Block OML 123, Others To NNPC

The Daily Crucible

 President Muhammadu Buhari has approved the restoration of the leases on oil blocks marked OMLs 123, 124, 126 and 137 to the Nigeria National Petroleum Corporation, NNPC.

NNPC is in production sharing contract with Addax Petroleum, a company wholly owned by Government of the People’s Republic of China on the blocks. 

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Earlier on March 30 this year, the leases belonging to the Federation were revoked.

This development reaffirms the commitment of President Buhari to the rule of law and sanctity of contracts.

The President directed the Department of Petroleum Resources, DPR to retract the letter of revocation of the leases and  directed NNPC to utilize contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between her 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, Garba Shehu, Senior Special Assistant (Media & Publicity) to the President, stated in a release