Home BUSINESS OIL & GAS Buhari Government Revokes 6 Oil Mining Licences

Buhari Government Revokes 6 Oil Mining Licences

Nigeria’s President Muhammadu Buhari

The Muhammadu Buhari Federal Government has revoked the licences of six Oil Mining Leases (OMLs) and one oil prospecting lease (OPL), in the onshore, shallow water and deepwater Niger Delta basin.
This was announced by the ministry of Petroleum Resources, headed by Present Buhari himself with Ibe Kachikwu as junior minister.
No reason was publicly made available for the revocation, but it might not be unconnected with default by the culprits on royalty payments .
The acreages affected include OML 98, an onshore asset located on the western flank of the Niger Delta, held by Pan Ocean, a company controlled by the Nigerian businessman, Festus Fadeyi; OMLs 120 and 121, held by Allied Energy, which has changed its name to Erin Energy and has now gone bankrupt; OML 108, held by Express Petroleum, but whose technical activities are managed by Shebah Exploration & Petroleum, a company owned by Seplat Chairman A.B.C Orjiakor and OML 141, held by Emerald Resources whose principal, Emmanuel Egbogah, passed on recently..
The only OPL among the seven is OPL 206, held by Summit Oil International, a company founded by the late Moshood Abiola, politician and businessman, whose victory at the country’s Presidential elections in 1993 was annulled by the Military.
The Nigerian government is believed to be the most lenient in Africa, in applying the full force of the law on oil acreage rent, especially when it concerns local E&P.

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