The Nigerian National Petroleum Company (NNPC) Limited has taken over production sharing contract (PSC) assets of Addax Petroleum.

NNPC announced this in a tweet on Tuesday, saying the closing documents to that effect were signed in Abuja on January 31, 2023.

The documents were signed by Mele Kyari, group chief executive officer, NNPC Limited, and Yonghong Chen, outgoing managing director, Addax, on behalf of the two parties.

Addax is owned by Sinopec, a state-owned Chinese firm.

The signing ceremony marked the termination of the 24-year PSC relationship between both oil firms.

The development comes over two months after Addax Petroleum Development Nigeria transferred four major oil mining leases (OMLs) to the national oil company, after exiting from the assets.

Both parties signed a memorandum of understanding (MoU) on the transfer, settlement and exit agreement (TSEA).

With the agreement, Addax ceased to be the PSC contractor for the four oil mining leases (OMLs) 123, 124, 126 and 137.

In April 2021, the defunct Department of Petroleum Resources (DPR) revoked the four Addax licences over poor development of the assets but three weeks later, President Muhammadu Buhari restored the licences.