The OMLs are, 123, 124, 126 and 137, all operated by Addax Petroleum Development Company Limited, APDCL and Addax Petroleum Exploration Nigeria Limited, APENL.
According to the Department of Petroleum Resources,DPR, the revocation and re-award have already been approved by President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources.
The agency stated that the oil assets are now to be operated by Kaztec Engineering Limited/Salvic Petroleum Resources Limited (KEL/Salvic) Consortium, consisting of two indigenous companies with effect from March 23, 2021.
Explaining the rationale for the revocation while speaking to journalists in Lagos yesterday, DPR Director, Eng, Sarki Auwalu said:
“On issue of revocation of Addax Petroleum, Over 50 per cent discovered fuel remained underdeveloped and they refused to develop it. Addax was there but not operating the asset like businesses should.
“Under the Petroleum Act, the first reason for revocation is when you notice that a business is not operating the asset vigorously in a business like manner, because it is economic sabotage. You know that this is the potential of the asset and you refuse to develop it.
“And this state of underdeveloped of over 40% is against the Petroleum Act. However, O ML 122 and 124 are supposed to expire in 2022, while OML 126 and 137 will expire in 2024 and 2027 respectively.”