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New operating consortium promises Nigeria better value from 4 oil assets

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Crude oil price hits $65.85 per barrel after OPEC, Non-OPEC meeting

…Says DPR did due diligence in choosing it

By Innocent Anaba

Kaztec Engineering Limited and Salvic Petroleum Resources consortium have promised to offer Nigeria better value in terms of increased revenue, local content boost, and more employment opportunity as they take over the operatorship of the Oil Mining Leases (OMLs) 123, 124, 126 and 137 previously operated by Addax Petroleum.

The new partners also disclosed that they have commenced engagement with Addax to ensure a smooth and amicable transition of operations at the assets.

The Kaztec/Salvic consortium said that the Department of Petroleum Resources, DPR, deserved to be commended for doing due diligence and following relevant laws in making them the choice operators of the assets.

The four OMLs previously operated by Addax under a Production Sharing Contractor (PSC) arrangement with the Nigerian National Petroleum Corporation, NNPC, was revoked in March by the DPR due to non-development of the assets by Addax.

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The new operating partners in a statement, said “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.”

Kaztec, one of the leading indigenous EPIC-M companies, with vast experience in offshore and onshore petroleum exploration and production, had collaborated with the previous operator on the assets for many years.

The consortium explained that the essence of the consortium was to ensure a seamless transition of operations with no disruptions in production or loss of revenue to the government.

“The choice of the consortium is also per the Nigerian Oil and Gas Industry Content Development (Local Content) Act which was enacted in 2010 to promote the 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 statement said.

The consortium noted that the DPR also directed that Addax and the new consortium engaged in an amicable resolution of all issues, including a commercial settlement if needed.

Vanguard News Nigeria

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