Addax Petroleum Explained

Addax Petroleum
Type:Private
Foundation:1994
Industry:Petroleum industry
Key People:Youghong Chen, Managing Director[1]
Products:Petroleum, Oil & Gas
Homepage:Addax Petroleum

Addax Petroleum was established in 1994 and since August 2009 has been a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia, and the third largest worldwide.[2] Addax Petroleum was an international gas and oil production and exploration company mainly focused on the Middle East, the North Sea, and Africa. Since its founding, the company has become one of the largest oil producers in West Africa.[3]

History

Addax Petroleum was originally part of the Addax & Oryx Group of Companies (AOG) which was founded in 1987. In 1989, AOG embarked on an ambitious expansion programme with the aim of becoming a vertically integrated oil company focused on the African continent. This led to the creation of Addax Petroleum in 1994 by Marc Lorenceau, a partner from the AOG trading group. Addax's initial steps in the upstream business was the acquisition of the Espoir field offshore Ivory Coast that had been relinquished by Phillips Petroleum Company in 1988. Four years later, Addax Petroleum sold its remaining equity in the Espoir field to CNR (Canadian Natural Resources). During the decrease in the price of oil in 1998, Ashland Oil Nigeria's assets were up for sale. Perenco appeared to be the best bidder for Ashland's assets. However, the bidding process was overturned and these assets were awarded to Addax Petroleum for the official amount of twenty million US dollars.

After the death of Mr. Lorenceau in a ski accident in late 2001, Jean Claude Gandur was appointed as the company's Chairman and CEO before its takeover by the Sinopec Group in August 2009. Following the takeover, Mr. Geng Xianglang was appointed CEO, followed by Mr. Zhang Yi in 2010.

In 2017, Addax agreed to pay 31 million Swiss francs to the Swiss Federal Office of Justice in order to settle allegations over suspected bribery of foreign officials in Nigeria. Following an investigation by the Swiss criminal authorities, Addax's CEO and Legal Director were both charged for suspected violations of the Foreign Bribery Act. Sufficient evidence was not gathered over the legality of the payments and no criminal intent was established.[4]

On the 31 January 2023, the four major oil mining blocks associated with Addax's production sharing contract (PSC) in Nigeria were formally acquired by The Nigerian National Petroleum Corporation (NNPC) Limited. The acquisition included an exit agreement, transfer settlement, and agreement that Addax will cease to retain the PSC contract for its four major oil mining leases in Nigeria.[5] [6]

Chronology

Addax Petroleum hydrocarbon production

The company's average daily oil production for 2011, was 140,000 bbl/d. Year-to-date average daily oil production as of Q3 2012 was 167000oilbbl per day (this figure does not take the Talisman-Sinopec Energy UK nor the OML 138 production figures into account).

As part of its "Vision 500", Addax Petroleum was aiming at reaching an average daily production of 500000oilbbl of oil by 2015. Addax Petroleum has never been able to get anywhere close to that production figure.

Addax Petroleum is currently the 2nd largest oil producer in Cameroon, the 4th largest in Gabon. Addax Petroleum used to be the 5th largest in Nigeria.

The TTOPCO Joint Venture company (together with Genel Energy) was the largest oil producer in Iraqi Kurdistan. In 2017, TTOPCO announced a $181-million writedown on the asset value [30] after the auditor McDaniel in February 2017, had evaluated its reserves at 59abbr=offNaNabbr=off, compared to 172e6oilbbl at 31 December 2015.Addax Petroleum purchased 49% of Talisman UK in 2012, to form the Talisman-Sinopec Energy UK Ltd Joint Venture company, that became Repsol-Sinopec Resources UK [31] in July 2016, and is the 4th largest UK oil producer. The Talisman UK production, that averaged 69000oilbbl of oil per day in 2012, continued its decline to be around 52000oilbbl of oil per day in 2017.

Asset growth

Addax Petroleum has a dominantly onshore and offshore brown producing-fields asset base located in Nigeria, Gabon, Cameroon and the Kurdistan Region of Iraq, as well as the UK North Sea's Continental Shelf.

Corporate culture

Addax Petroleum's motto states, "Each step makes a difference and difference is our strength".The company motto reflects the fact that Addax Petroleum puts strong emphasis on cross-cultural management, as the company brings together employees from many different cultural backgrounds under Chinese management.

External links

Notes and References

  1. News: Izuaka . Mary . Addax Petroleum exits Nigeria, transfers assets to NNPC . 12 September 2023 . Premium Times . 2 November 2022.
  2. News: China's Sinopec to buy Addax for C$8.27 billion. Reuters UK. 2017-04-12. en-GB.
  3. Web site: Addax Petroleum Corporation: Private Company Information - Bloomberg. www.bloomberg.com. 2017-04-12.
  4. Web site: Swissinfo.ch with agencies/ug . 2017-08-07 . Addax Petroleum to close operations in Geneva . 2023-09-12 . SWI swissinfo.ch . en.
  5. Web site: Izuaka . Mary . November 2022 . Addax Petroleum exits Nigeria, transfers assets to NNPC . 2023-09-12 . www.premiumtimesng.com.
  6. Web site: 2023-02-07 . Market Report: NNPC Limited Takes Over Addax Petroleum Assets . 2023-09-12 . en-US.
  7. Web site: Pogo drills off Thailand and in the GoM : Addax expanding, extending production from 'marginal' Nigerian fields. Offshore-mag.com. 2017-02-22.
  8. Web site: OCCRP . 22 September 2022 . INVESTIGATION: Swiss-based AOG funded joint accounts with Nigerian politicians, others . 2023-09-12 . www.premiumtimesng.com.
  9. Web site: History . Genelenergy.com . 2017-02-22.
  10. Web site: 24/05/2007 the London Stock Exchange is delighted to welcome Addax Petroleum to the Main Market. - London Stock Exchange . 2013-01-31 . dead . https://web.archive.org/web/20120819060903/http://www.londonstockexchange.com/companies-and-advisors/news-events/welcome/24-05-2007-addaxpetroleumtomainmarket.htm . 2012-08-19 .
  11. https://web.archive.org/web/20150213111417/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIRoJNEX00t8 Sinopec Group Agrees to Buy Addax for $7.3 Billion (Update2) - Bloomberg
  12. Web site: Addax buys Shell's stake in Pecten | Companies . Chinadaily.com.cn . 2017-02-22.
  13. Web site: Talisman and Sinopec to create joint North Seas venture - BBC News . Bbc.co.uk . 2017-02-22.
  14. https://web.archive.org/web/20121122043152/http://www.bloomberg.com/news/2012-11-19/total-sells-nigeria-oil-field-to-sinopec-for-2-5-billion.html Total Sells Nigeria Oil Field to Sinopec for $2.5 Billion - Bloomberg
  15. Web site: Addax Petroleum Corporation, our mission and Our values. 2017-04-18.
  16. Web site: Exxon takes over operatorship on Usan from Total - NIGERIA - Africa Energy Intelligence 18/11/2014 . Africaintelligence.com . 2017-02-22.
  17. Web site: Addax-Petroleum-licencie-70-personnes-a-Geneve 17/09/2015 . tdg.ch . 2015-09-17.
  18. Web site: Sinopec slaps Repsol with $5.5B arbitration notice . offshoreenergytoday.com . 2017-09-25.
  19. Web site: Statement of circumstances relating to the resignation of Deloitte LLP as auditors to Addax Petroleum UK limited . beta.companieshouse.gov.uk 14/12/2016. 2017-02-20 .
  20. Web site: Une affaire explosive rattrape le pétrolier Addax 20/02/2017 . tdg.ch . 2017-02-20 .
  21. Web site: Le groupe genevois Addax mis en accusation par ses auditeurs 21/02/2017 . letemps.ch . 2017-02-22 .
  22. Web site: Le patron d'Addax Petroleum arrêté à Genève 24/03/2017 . letemps.ch . 2017-03-24 .
  23. Web site: Addax to pay 31 million Swiss francs to settle Swiss bribery charges .
  24. Web site: Chinese-owned oil firm Addax shuts offices after Swiss bribery case . .
  25. Web site: 2023-01-27 . Sagir Jajere is New MD, in Charge of Addax Operations - Africa’s premier report on the oil, gas and energy landscape. . 2023-09-12 . africaoilgasreport.com . en-US.
  26. Web site: Opinion . 2021-04-24 . Addax Petroleum: Action that saved Nigeria from global embarrassment . 2023-09-12 . Punch Newspapers . en-US.
  27. News: Busari . Biodun . 31 January 2023 . NNPC takes over Addax Petroleum assets . Vanguard . 12 September 2023.
  28. News: Oyero . Kayode . 31 January 2023 . NNPC Takes Over Addax Petroleum Assets . Channels TV . 11 September 2023.
  29. News: 19 March 2024 . Le chinois Addax Petroleum contraint de licencier 250 de ses agents au Gabon . 27 March 2024.
  30. Web site: Tag Archives Taq Taq Operating Company (TTOPCO) . iraq-businessnews.com . 2017-09-25 .
  31. Web site: Repsol Sinopec Resources UK website . repsolsinopecuk.com/ . 2017-09-25 .

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