Addax Petroleum
| Company type | Subsidiary |
|---|---|
| Industry | Oil and gas |
| Founded | 1994 |
| Founder | Marc Lorenceau |
Area served | Middle East, North Sea, Africa (West Africa, Nigeria, Gabon, Cameroon, Kurdistan Region of Iraq, UK North Sea) |
Key people | Geng Xianglang (CEO), Zhang Yi (CEO) |
| Products | Oil and gas exploration and production |
| Parent | Sinopec Group |
Addax Petroleum was founded in 1994 and has operated as a subsidiary of the Sinopec Group since August 2009. Sinopec ranks among the leading oil and gas producers in China, stands as the largest oil refiner across Asia, and is the third biggest globally. Addax Petroleum specialized in international exploration and production of oil and gas, with primary operations in the Middle East, the North Sea, and Africa, establishing itself as a key oil producer in West Africa.
History
The origins of Addax Petroleum trace back to the Addax & Oryx Group of Companies (AOG), which was established in 1987. By 1989, AOG began evolving into a vertically integrated oil enterprise concentrating on Africa, culminating in the formation of Addax Petroleum in 1994 by Marc Lorenceau, an AOG partner. Its initial upstream asset was the Espoir field located offshore Ivory Coast, acquired after Phillips Petroleum Company relinquished rights in 1988. Subsequently, Addax divested its stake in Espoir to Canadian Natural Resources. In 1998, following an overturned bidding process, Addax purchased Ashland Oil Nigeria's assets for $20 million.
After Marc Lorenceau’s passing in 2001, leadership passed to Jean Claude Gandur, who served as Chairman and CEO until Sinopec’s takeover in 2009. Following this acquisition, leadership transitioned to Mr. Geng Xianglang and later Mr. Zhang Yi as CEOs.
In 2017, Addax settled allegations concerning suspected bribery of foreign officials in Nigeria by paying 31 million Swiss francs. Swiss authorities charged the company’s CEO and Legal Director under the Foreign Bribery Act; however, no criminal intent was proven.
On 31 January 2023, The Nigerian National Petroleum Corporation (NNPC) Limited officially took ownership of Addax’s four principal oil mining blocks under its production sharing contract (PSC) in Nigeria. This transaction included an exit agreement and transfer settlement, marking the conclusion of Addax’s PSC interests in Nigeria.
Chronology
- 1994: Establishment of Addax Petroleum; awarded PSC for Espoir field offshore Ivory Coast.
- 1998: Acquisition of Ashland Nigeria assets; production averaged approximately 8,800 barrels per day.
- 1999: Initiated first drilling campaign within OML 123 offshore Nigeria.
- 2000: Discovered Ebuguu Northeast within OML 123 offshore Nigeria.
- 2001: Found Adanga South in OML 123 offshore Nigeria; founder Marc Lorenceau died.
- 2002: Average daily production reached roughly 40,000 barrels; signed Ngosso Concession Agreement offshore Cameroon.
- 2003: Discovered Oron West & North fields in OML 123; conducted drilling campaign on OML 124 offshore Nigeria.
- 2005: Incorporated under Canadian jurisdiction; production averaged about 75,000 barrels per day. Commenced production at Okwori field (OPL90/OML126) offshore Nigeria. Secured three PSCs within Nigeria/São Tomé & Príncipe Joint Development Zone. Entered farm-in agreement for Taq Taq field, Kurdistan Region of Iraq (KRI).
- 2006: Listed shares on Toronto Stock Exchange (TSX); acquired Pan Ocean Energy assets located in Gabon.
- 2007: Production averaged approximately 126,000 barrels daily. Founded Addax Petroleum Foundation. Listed on London Stock Exchange (LSE).
- 2008: Signed PSC for Iroko licence offshore Cameroon.
- 2009: Sinopec Group acquired Addax for $7.3 billion. Began first crude exports from Taq Taq field in Iraqi Kurdistan.
- 2011: Average production reached near 140,000 barrels per day. Purchased Royal Dutch Shell’s upstream offshore Cameroon assets. Established Sinopec-Addax Petroleum Foundation.
- 2012: Created joint venture Talisman-Sinopec Energy UK Ltd. Acquired Total S.A.’s stake in OML 138 deep offshore Nigeria. Opened Houston office in the United States.
- 2013: Emphasized corporate value "Integrity through Action."
- 2014: Attempt to acquire Total’s interest in OML-138 failed due to Nigerian regulatory denial.
- 2015: Faced challenges from crude price decline and operational issues; reduced Geneva staff by seventy percent.
- 2016: Initiated $5.5 billion arbitration against Talisman and Repsol concerning UK asset acquisitions. Deloitte declined certification of UK branch’s balance sheet amid investigations into suspicious payments.
- 2017: CEO and Chief Legal Officer detained in Geneva over foreign corruption allegations; resolved case with $31 million settlement. Subsequently closed offices in Geneva, Houston, and Aberdeen, resulting in termination of 174 employees; closures completed by year-end.
- 2021: Nigerian Department of Petroleum Resources revoked Addax licenses; later reinstated by President Muhammadu Buhari.
- 2023: NNPC Limited acquired Addax Petroleum’s Nigerian PSC assets.
- 2024: Upon expiration of Gabonese Tsiengui-Obangué assets, transferred ownership to Gabon Oil Company (GOC).
Addax Petroleum hydrocarbon output
In 2011, Addax Petroleum’s daily oil production averaged 140,000 barrels per day. By the third quarter of 2012, the year-to-date average had increased to 167,000 barrels per day, not including production from Talisman-Sinopec Energy UK and OML 138.
The company set an ambitious goal under its "Vision 500" plan to reach 500,000 barrels per day by 2015; however, this target was never realized.
Addax ranks as the second-largest oil producer in Cameroon and holds the fourth position in Gabon, having previously been fifth in Nigeria. The TTOPCO Joint Venture with Genel Energy was the leading producer in Iraqi Kurdistan, though in 2017 it faced a $181 million impairment charge after reserves were downgraded from 172 million barrels at the end of 2015 to 59 million barrels.
In 2012, Addax secured a 49% interest in Talisman UK, leading to the formation of Talisman-Sinopec Energy UK Ltd, which was rebranded as Repsol-Sinopec Resources UK in 2016 and is currently the fourth-largest oil producer in the UK. Production at Talisman UK declined from an average of 69,000 barrels per day in 2012 to approximately 52,000 barrels per day by 2017.
Expansion of assets
The asset base of Addax Petroleum primarily consists of both onshore and offshore producing fields located in Nigeria, Gabon, Cameroon, the Kurdistan Region of Iraq, and on the Continental Shelf of the UK North Sea.
Organizational culture
Under Chinese management, Addax Petroleum places strong emphasis on cross-cultural leadership, embodied by its slogan: "Each step makes a difference and difference is our strength."