NNPC resumes oil production in Ogoni, 30 years after
The Nigerian National Petroleum Corporation (NNPC) has resumed crude oil production in the Ogoni region after an Appeal Court’s judgement affirmed its operatorship of the oil mining licence 11 (OML 11).
This came after more than 30 years of legal tussle with Shell Petroleum Development Company (SPDC) over the entitlement to renew the lease on OML 11.
A Federal High Court in Abuja had on August 23, 2019 held that the SPDC was entitled to the renewal of the lease on OML 11.
The NNPC thereafter went to an Appeal Court to challenge the ruling.
But the appellate court in Abuja on Monday held that the minister of petroleum resources had the discretion to renew the OML 11 lease in favour of the SPDC or do otherwise.
The court further held that the minister rightly exercised his discretion in awarding the OML 11 lease to NPDC, a subsidiary of the NNPC.
Yesterday, a statement by the Group General Manager, Group Public Affairs Division of the NNPC, Garba Deen Muhammad, quoted the NNPC Group Managing Director, Malam Mele Kyari, as saying that the ruling had 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 said the resumption of operations on OML 11 would demonstrate NPDC’s full commitment to develop and add value to its communities and the country 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,” Malam Kyari stated.
The statement further noted that the NPDC had taken over the assets and operation was in full gear. He added that the company was working closely with all stakeholders and partners to achieve the new vision of “responsible, smart engineering and environmental sustainability,” the federal government endorsed for OML 11.
The statement noted that the environment would be a top priority for NPDC’s operations, as well as implementation of a robust host community engagement strategy to address subsisting issues, while agreeing to a transparent engagement model going forward.
The NNPC cautioned against any further legal challenge by the SPDC, stressing that it was about time Nigeria derived the benefit of the OML11 after over three decades.