NNPC Ltd said on Tuesday Sinopec's Addax Petroleum Development (Nigeria) Ltd had exited from its four major oil mining blocks in Nigeria and transferred them to the state-owned oil company.

Addax began operations in Nigeria in 1998 by signing Production Sharing Contracts (PSCs) with NNPC.

"NNPC Ltd and Addax Petroleum Development (Nigeria) Ltd signed a Memorandum of Understanding on the Transfer, Settlement and Exit Agreement for Oil Mining Leases (OML) 123/124 and OMLs 126/137," NNPC said on its official Twitter account.

Bala Wunti, chief investment officer of NNPC Upstream Investment Management Services said "with this agreement, Addax has ceased to be the PSC contractor of the asset."

NNPC and Wunti did not give the terms of the agreement.

The oil leases were in April 2021 revoked by the petroleum regulator which accused Addax of failing to develop them sufficiently, but the decision was overturned by President Muhammadu Buhari three weeks later.

Three of the leases have producing fields, according to Addax's website.

NNPC became a commercial entity in July and is bulking up assets ahead of a planned initial public offering in the second half of next year.

Reuters