By Deji Elumoye
President Muhammadu Buhari on Friday approved the restoration of Oil Mining Leases (OMLs) 123, 124, 126 and 137 to the Nigeria National Petroleum Corporation (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.
The President, in a release by his Media Assistant, Garba Shehu, said the five leases belonging to the Federation which were revoked on March 30, 2021, were being restored to NNPC in line with the current administration’s commitment to the rule of law, fairness and enabling a stable business climate for investment.
This development reaffirms the commitment of President Buhari 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.
President Buhari further stressed that 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.