President Muhammadu Buhari has approved the restoration of Oil Mining Leases (OML) 123, 124, 126, and 137 to the Nigeria National Petroleum Corporation (NNPC) which is in production sharing contract with Addax Petroleum.
Addax Petroleum is owned by the Chinese government.
The OMLs were revoked by the Department of Petroleum Resources (DPR) on March 30.
The Senior Special Assistant on Media and Publicity to the President, Garba Shehu, who confirmed the development in a statement in Abuja on Friday, said the President directed the DPR to retract the letter of revocation of the OMLs.
He also ordered the NNPC to utilize contractual provisions to resolve issues in line with the extant provisions of the Production Sharing Contract arrangement between the Corporation and Addax.
The statement said the restoration of the OMLs was in line with the current administration’s commitment to the rule of law, fairness, and enabling a stable business climate for investment.
According to the statement, the development reaffirms the commitment of the Buhari administration to the rule of law and sanctity of contracts.
The statement read: ”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.”
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