Sagir (Sajiru) Jajere, General Manager, PSC at the NNPC Ltd’s headquarters, has been seconded to Addax Petroleum, as the state hydrocarbon firm takes ownership of Addax’s Nigerian operations.
With Jajere at the head of the new management as Managing Director are Emmanuel Agwu and Ida Ekerelu, also seconded from NNPC. Ekerelu will act in CFO capacity, while Agwu will be Chief Operating Officer in the transition.
The threesome is effectively “the transition management team to manage oil production and develop the gas potentials of the acreages”.
NNPC’s take-over of Addax comes on the heels of a close-out and signing ceremony of an asset transfer, settlement and exit agreement (TSEA) with Addax, after a drawn-out dispute on Addax operated Oil Mining Leases (OMLs) 123/124, 126/137, that crystalized with a hurried, unilateral transfer of those assets by the defunct Department of Petroleum Resources, to two Nigerian owned companies in 2020.
“The protracted dispute has finally been laid to rest, paving the path for much-needed investment and growth on the oil blocks,” NNPC declared in a statement.
The Production Sharing Contract (PSC) for the blocks was initially signed in 1973 between the NNPC and Ashland but was terminated after 25 years. Subsequently, the NNPC signed another PSC with Addax in 1998 on the blocks which were operated through Addax Petroleum for another 24 years. However, the Addax PSCs were associated with significant intricacies and complexities and attendant disputes, the statement added.
“In 2021, issues around the revocation of the licences were reconsidered and the upstream industry regulator, the NUPRC, advised that the asset be returned to the Concessionaires, NNPC Limited, to ensure clean and amicable exit for Addax…On January 25, 2022, the NNPC Limited commenced formal engagements with Addax and the Nigerian Upstream Petroleum Company (NUPRC), followed by series of meetings to ensure a swift closeout of the exit discussions and formalities.