OML 46: Senators knock NUPRC over re-allocation of Atala oil field

Members of the Senate Committee on Ethics, Privileges and Public Petitions have slammed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the revocation and reallocation of the Oil Mining Licence, OML 46 (Atala oil field) to Halkin Exploration and Production Company Limited (Halkin E&P).

The oil field was formerly managed by the trio of Bayelsa Oil Company Limited (BOCL), Hardy Oil Nigeria Limited and Century Exploration and Production Limited (CEPL), according to a petition to the Senate committee by the Bayelsa State government.

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But the operating licence was revoked on April 6, 2020, by the defunct Department of Petroleum Resources (DPR) and re-awarded to another oil firm, Halkin.

The previous managers, however, kicked against the revocation, claiming that as original operators of the oil field, explorations and productions have been made and royalties paid to the federal government.

They said as of the time the field was purportedly revoked, the JV partners have an outstanding 20,700 barrels of crude on the site.

The shut-out operators, therefore, petitioned the Senate committee to seek redress.

During an investigative hearing on the matter last Friday, Dr Kelechi Ofoegbu, the Executive Commissioner, Economic Relation and Strategies of NUPRC, which inherited DPR, said the action taken by the defunct regulatory agency was in order.

But his submission did not go down well with the committee members, who said the presidential directive, which favours previous operators, was not followed in the discretionary action taken by DPR.

They directed NUPRC to produce a written directive given to that effect by Mr President to justify the reallocation of the marginal oil field to another firm.

The Chairman of the Senate committee, Senator Ayo Akinyelure, said: “NUPRC, which is now the new regulatory agency you represent here, is not expected to take sides on the disputed oil field.

He said, “Since DPR is inherited by NUPRC, the new agency, must furnish this committee 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.