The Senate Committee on Ethics, Privileges and Public Petitions has asked the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), formerly known as Department of Petroleum Resources (DPR) to provide evidence of its engagements in the wrongful re-allocation of Atala Marginal Oil field (OML 46) owned by Bayelsa State government to Halkin Exploration and Production Company Limited (Halkin E&P).
The committee also asked the NUPRC to provide it with a written directive from President Buhari, upon which award of the Atala Oil Field was made to Halkin E&P and not previous operators as clearly stated in the presidential directive quashing the revocation.
Its position was sequel to a controversy arising from a revocation of the operating licence of BOCL by the then DPR, on the Marginal Oil Field over alleged lack of assets turn-around for the nation in deriving maximum value from available resources therein.
The action which took place on April 6, 2020 irked the trio of BOCL, Hardy Oil Nigeria Limited and Century Exploration and Production Limited (CEPL), which kicked against the revocation on the grounds that as original operators of the oil field, explorations and productions have been made and royalties paid into account of the federal government of Nigeria.
They also argued that as at the time the field was purportedly revoked, the JV-partners have an outstanding 20,700 barrels of crude on the site.
On the strength of the development, the President, Muhammadu Buhari, in October 2020, directed the “reinstatement of the revoked licences on a discretionary basis to qualified companies with consideration given to the previous operators of the respective fields subject to the demonstration of technical/financial capacity and payment of applicable Good and Valuable Consideration (GVC).”
But,NUPRC by a February 28, 2021 letter signed by Auwalu Sarki on behalf of the Minister of State for Petroleum Resources, Timipriye Sylva, awarded the oil field to Halkin Exploration and Production Limited which is not among the previous operators, leading to petitions filed against it to the Senate Committee on Ethics, Privileges and Public Petitions by the shutout operators .
Besides, Governor Douye Diri of Bayelsa State amid the protest, sought legal redress in overturning the revocation especially in consideration of the resources already committed to the oil field by the Bayelsa State government as owners of 51% equity .
The Executive Commissioner, Economic Relation and Strategies, Kelechi Ofoegbu, who represented the NUPRC Chief Executive at the Senate Committee’s investigative hearing on the matter, tried unsuccessfully to rationalise the decision, as members of the committee requested for written directive given to that effect by Mr President.
Kelechi’s attempt to convince the Senator Ayo Akinyelure (PDP Ondo Central), Committee that the inherited action taken by the defunct DPR was in order, yielded no result as the lawmakers insisted that the Presidential Directive which favours previous operators was not followed in the discretionary action taken by DPR.
The committee’s chairman, said:”NUPRC which is now the new regulatory agency that you represent here , is not expected to take side on the disputed oil field .Perhaps, in running away from the fact and getting away with the oil field award, Halkin stopped appearing before this committee after previous appearances by resorting to litigation in the court of law .
“What this committee wants from NUPRC being the inheritor of DPR , is written Presidential directive on the oil field award to Halkin E&P and nothing more . It is wrong for an implementing agency to hide under discretion , in violating Mr President’s clear cut directive. DPR which is now NUPRC must provide a written Presidential directive on the Atala Marginal Oil Field it awarded to Halkin with attendant enormous financial loss inflicted on previous operators , one of which had invested $60million in it as contained in documents before us” .
Kelechi incurred the anger of the committee when he interjected by dismissing the $60million invested not to be on oil exploration by any of the previous operators but on equipment .
Members of the Committee like Senators Michael Nnachi ( PDP Ebonyi South) , Uche Ekwunife ( PDP Anambra South ) , etc , descended on him by declaring that $60million on equipment clearly shows the competence and capability of the now rejected operators to handle the oil field .
Lady Ada Chukwudozie,who represented Hardy Oil Nigeria Limited ( HONL) , also took exceptions to submissions made by Kelechi of the NUPRC .
