OML 11: NPDC takes over operation after court victory

The Nigerian Petroleum Development Company (NPDC) has taken over the assets with operations in full gear following the Appeal Court’s Judgement affirming the Nigerian National Petroleum Corporation operatorship of Oil Mining License 11 (OML 11).

The company is also working closely with all stakeholders and partners to achieve the new vision of responsible, smart engineering and environmental sustainability, that the Federal Government has endorsed for OML 11.

The NNPC GMD, Mele Kyari, who stated these noted that the NPDC will pursue the promotion of clean energy via its gas production with prospects of gas-to-power initiatives to “light up opportunities in the region,” and provide the much-deserved industrialization.

A statement by the Group General Manager, Group Public Affairs Division, NNPC, Mr. Garba Deen Muhammad, quoted Kyari, as saying that the ruling has paved the way for the NPDC to lead a formidable OML 11 team towards bolstering productivity in a responsible, efficient, environmentally friendly, and sustainable manner

He noted that the environment will be a top priority for NPDC’s operations, as well as implement a robust host community engagement strategy to address subsisting issues, while agreeing to a transparent engagement model going forward.

The Appeal Court sitting in Abuja had on Monday upturned the August 23, 2019 ruling of the Federal High Court, Abuja which held that the Shell Petroleum Development Company (SPDC) was entitled to the renewal of the Lease on OML 11.

In the ruling, the Appellate Court held that the Minister of Petroleum Resources has the discretion whether or not to renew the OML 11 Lease in favor of SPDC.

The Court further held that the minister rightly exercised his discretion in awarding the OML 11 Lease to NPDC, a subsidiary of the Nigeria National Petroleum Corporation (NNPC).

The NNPC while hailing the recent Appeal Court judgment affirming its operatorship of the OML 11, described it as a huge victory for Nigeria and the beginning of addressing decades of host community restiveness.  

The Corporation warned
Shell Petroleum Development Company (SPDC) against any further legal challenge on Oil Mining License 11 (OML 11), stressing that it was about time Nigeria derives the benefit of the OML 11 after over three decades.   

The statement quoted the NNPC GMD to have said, “It is time to roll back the decades of despair and destruction with the emphatic Appeal Court ruling. It is time to unlock opportunities for economic development in the region.

“In the light of their inability to work on the Ogoni region of the block for over 30 years and the new beginning this judgement presents, further legal action by Shell will not only be futile – it would be depriving Nigeria of an opportunity to make meaningful gains from OML 11 when the nation needs all the revenue it can get to move Nigeria forward,” he said.

The statement said that resumption of operations on OML 11 will demonstrate the NPDC’s full commitment to develop and add value to its communities and the nation as a whole

“We now have an opportunity to reconstruct a new beginning on OML 11, driven by global best practices and a social contract that would put the people and environment of the Niger Delta above pecuniary considerations.

“This is a huge victory for the government and people of Nigeria as we now have the impetus to responsibly unlock the oil and gas reserves the block offers for the benefit of all Nigerians,” Kyari stated.

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