Citing the non-development of its assets for several years, the Department of Petroleum Resources (DPR) has revoked three Oil Mining Licences (OMLs) belonging to Addax Petroleum.
The facilities include OMLs 123, 124, 126, and 137.
In an interaction with newsmen on Tuesday, the Director/Chief Executive Officer of DPR, Sarki Auwalu, stated that the decision was taken to address production and revenue losses occasioned by the neglect of the assets.
According to him, over 50 per cent of the properties remain undeveloped after years, contrary to the provisions of the Petroleum Act.
Auwalu noted that OML 137 holds gas reserves of more than three trillion cubic feet, adding that the resources have remained flat over the years.
The oil firm had declared a force majeure on its operations in 2015, affecting the Antan project.
The DPR boss said the revoked licences had been re-awarded to Kaztec and Salvic Consortium after observance of due process.
He indicted Addax for ‘significant’ gas flaring even when it did not supply the product to the domestic market.