By CHIKA IZUORA |
Kaztec Engineering Limited and Salvic Petroleum Resources consortium has begun engagement for the formal take over of four Oil Mining Leases, OML, recently offered to the consortium by the Department of Petroleum Resources (DPR).
As part of its assignment, the new consortium is required to, among other things, operate the OMLs under a Production Sharing Contract, PSC, with the Nigerian National Petroleum Corporation, NNPC; and pay a Good and Valuable Consideration (GVC) of $340 million at the commencement of the PSC.
The new partners disclosed in a statement that they have commenced engagement with Addax to ensure a smooth and amicable transition of operations at the assets.
They also 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.
The Oil Mining Leases (OMLs) are OML, 123, 124, 126 and 137 previously operated by Addax Petroleum.
The Kaztec/Salvic consortium stated 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Addax under a Production Sharing Contractor (PSC) arrangement with the Nigerian National Petroleum Corporation (NNPC), was revoked in March by the DPR due to non-development of the assets by Addax.
The promise by Kaztec/Salvic is coming barely one week after President Muhammadu Buhari overruled the DPR by cancelling the revocation of the assets and mandating the regulator to restore them to the NNPC, Addax’s contractual partner.
The new operating partners in a statement, promised to maximize the potential of the four assets to ensure that the government and the people of Nigeria benefit fully from the assets against the backdrop of the current energy transition in the world.
“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,” the statement said.
The Kaztec/Salvic consortium said the DPR deserved to be commended for doing due diligence in picking it as the new operators of the assets, stating that the choice of the consortium was in accordance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.