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Nigerian government files lawsuit to recover $3 bln from Addax

The government of Nigeria has started legal proceedings to recover $3 billion in unpaid taxes and royalties from Addax Petroleum.
By Staff reporter 5 March 2018 Middle East & Africa / Companies & Finance 0 29849

The government of Nigeria has started legal proceedings to recover $3 billion in unpaid taxes and royalties from Addax Petroleum, Nigerian newspaper ThisDay reported on Sunday.

Addax, a subsidiary of China’s Sinopec, signed a production-sharing contract with Nigerian National Petroleum Corp. in 1998 for the 98/118 and 90/225 oil prospecting licences, which were converted into oil mining licences after Addax made commercial discoveries four years later.

The contract stipulated that Addax would pay a flat royalty of 20% on oil production and a petroleum profit...