The consortium of Kaztec Engineering Limited and Salvic Petroleum Resources has pledged to offer Nigeria better value in terms of increased revenue, local content boost, and more employment opportunity once they take over the operatorship of the Oil Mining Leases (OMLs) 123, 124, 126 and 137 previously operated by Addax Petroleum.
They 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 on-going Energy Transition.”
It 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.
The promise by Kaztec/Salvic is coming barely one week after President Muhammadu Buhari overruled the Department of Petroleum Resources by cancelling the revocation of the Addax assets.
As part of its assignment, the new consortium is required to, among other things; operate the OMLs under a PSC with NNPC; and pay a Good and Valuable Consideration (GVC) of $340 million at the commencement of the PSC.
The government equally charged the new partners to ramp up investment in the OMLs so that production revenue, royalties and taxes to the government will exponentially increase, in addition to the upfront payment of GVC.
The Kaztec/Salvic consortium is expected to commence development of the large gas resources on the assets within 24 months -both for the domestic market and for export, in line with the government’s aspirations for the gas industry.