FG Earned $7bn from Addax Petroleum Since 2009, Says Oil Firm

By Ejiofor Alike

Addax Petroleum Development (Nigeria) Limited, which operates Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) PSC has produced 425 million barrels of crude oil and generated over $7 billion in revenue to the Nigerian government since 2009 when SINOPEC took over the company.

In addition, the venture has also invested over $5 billion in its business activities in the country, an investment that over the years resulted in job creation for residents of its operating host communities, and funding critical community projects in the areas of agriculture, health and education.

The company’s General Manager in charge of External and Governmental Affairs, Mrs. Dorothy Atake, who made the disclosure, also said in a statement at the weekend that the Addax/NNPC PSC was planning a fresh investment of between $3 billion and $5 billion in Nigeria over the coming years as part of efforts to optimise its operations in the country and increase production from its existing assets, both onshore and offshore.

The statement noted that the company as contractor to and on behalf of Addax achieved this feat through sustained investment in reserves and production growth activities, application of technology, strong NNPC/DPR partnership, as well as strong partnership with host communities.

The company’s statement stressed that leveraging on its world class technical expertise and application of technology, Addax has brought various fields onstream and embarked on exploration and appraisal campaign in its adjacent concession areas resulting in commercial oil discoveries in Ofrima and Udele fields, a project pivotal to Addax growth plans in the country.

“Additionally, Addax Petroleum has a strong track record of developing under-exploited hydrocarbon resources and has through business drivers hinged on Health, Safety, Security and Environment (HSSE), human capital development, operations excellence and capital efficiency achieved this feat,” the statement added.

Atake further stated that as part of its production activities, Addax recently kicked off its sustenance campaign through the current drilling activities in the Njaba field in Oil Mining Lease (OML) 124 license area, premised on execution of low cost, capital efficient production optimisation principles to increase output from that area.

“The first oil producer in this drilling campaign was recently drilled and completed ahead of schedule and at significantly lower cost than budget. Preliminary well test results have also exceeded projected average oil production potential,” she said.

According to her, the company has also pioneered institution of a micro credit scheme, where over 480 women have been empowered to develop their small scale businesses, through a revolving loan scheme initiated to empower small scale business women within its OML 124 host communities.

Technical Skill Acquisition Programme (TSAP) has enabled community youths within its host communities in Imo, Akwa Ibom and Rivers States to be trained at the Federal Technical College, Omoku in Rivers State, on selected vocations. “After each training session, Addax Petroleum donates tools and equipment to assist them set-up small scale businesses in their chosen vocation. Thus far, significant amount have been expended on this scheme,” the company said.

The statement added that Nigerian Content Development remains one of Addax Petroleum’s critical business drivers as the company ensures total compliance to the requirements of the Nigerian Content Act with the tremendous support of the Nigerian Content Development and Monitoring Board (NCDMB).

“Its future in Nigeria remains very bright with a planned investment outlay of $3 billion to $5 billion. Indeed, growth and profit enhancement opportunities within its existing licence areas and further onshore and onshore drilling and development activities are planned for next year and beyond,” the statement said.

Addax Petroleum has since 2009 been a wholly owned affiliate of the Chinese entity, Chineses Petroleum Company (SINOPEC).