The Federal Government has asked the Court of Appeal, Lagos Division, to set aside a Federal High Court judgment that returned the Dawes Island Marginal Field licence to Eurafric Energy Limited.
The Ministry of Petroleum Resources and the Minister of Petroleum Resources, in their Brief of Arguments, argued that Eurafric failed to develop the field after holding the asset for 17 years.
Filed through counsel Adebayo Ologe Esq, leading Opeyemi Alaje Esq, the appeal is marked CA/LAG/CV/362/2026.
The government is contesting the 29 January 2026 ruling by Justice Abimbola Awogboro of the Federal High Court, Lagos. The judge had granted all 17 declaratory and injunctive reliefs sought by Eurafric Energy, the respondent in the appeal.
According to the appellants, the Federal Government awarded Dawes Island Marginal Field to Eurafric in February 2003 under the marginal field programme.
The award came with an expectation that the company would develop the asset and begin production within five years.
In the appeal, the Appellants argued that despite receiving extensions in 2011 and 2016, Eurafric failed to achieve commercial production.
The appellants further contend that the final extension granted in 2016 expressly warned Eurafric that it represented the company’s last opportunity to bring the field into production, failing which the licence would be withdrawn.
Eurafric conducted an Extended Well Test between 2016 and 2018 and extracted 62, 039 barrels of crude oil, the government argued that such testing could not be equated with commercial production.
It relied on regulatory guidelines and evidence presented at trial to assert that several additional approvals and technical requirements were necessary before a field could be regarded as producing.
They also challenged the trial court’s finding that the revocation of the licence in April 2020 was unlawful.
According to the government, the trial court wrongly applied provisions of the Petroleum Industry Act 2021 to events that occurred before the law came into force and failed to recognise the Minister’s statutory discretion under the Petroleum Act 2004.
The Appellants prayed the Court of Appeal to set aside the trial court’s judgment in its entirety, insisting that the revocation and subsequent re-award of the field to Petralon 54 Limited were lawful and in line with public policy objectives aimed at boosting oil production and government revenue.
When the hearing of the appeal came up on Thursday, all parties in the three appeals informed the Court of Appeal, Lagos of their respective applications, which includes applications for stay of execution and applications to regularise the respective Briefs of Argument.
The court adjourned till January 21, 2027, for hearing of the three appeals that emanated from the trial court’s judgment.