Reps Seek Suspension Of $250m Auction Of OML 11

December 28, 2022
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December 28, 2022
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The House of Representatives, Wednesday implored the Federal Government and the Nigerian Petroleum Development Company, to suspend the planned auction of the Oil Mining Licence (OML) for the sum of 250 million dollars to Sahara Energy Resource Limited.

It also resolved to mandate the committee on Petroleum Upstream to urgently investigate the planned auction among other matters and report back within one month.

The resolutions followed the consideration of a motion under matters of urgent public importance moved by Hon. Victor Mela Danzaria (PDP, Gombe) at plenary.

Hon Mela,while presenting the motion on the floor, says there was need to uncover every covert arrangements concerning the allegation.

“The oil fields under (OML) 11 were formerly operated by the Shell Petroleum Development Company (SPDC) joint venture and has laid idle since Shell was forced out of Ogoni Land in 1993. By a Court of Appeal judgment of 16 August 2021, the SPDC joint venture lost its right to renewal of the operating license. OML 11 asset was thereafter renovated to an operating subsidiary of the Nigerian National Petroleum Company Limited (NNPCL),” he disclosed.

He further expressed concern over the unresolved issues between the government and the host communities and the Oil Mining License 11, and other oil producing communities that has caused unrest among the people.

He added:”The government is involved in an under the table covert arrangements to auction OML 11 assets to the Sahara Energy Resource Limited for a paltry sum of 250 million dollars as against the one billion dollars offered by SPDC Limited.There is need to urgently clarify and resolve issues associated with the planned auction among other matters”,he alleged.

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