Reps, DPR differ over oilfield revocation

The House of Representatives’ Committee on Public Petitions and the Department of Petroleum Resources (DPR) have differed over the Dawes Island marginal field lost by Eurafric for holding the national asset without production for 16 years.

The Minister of State, Petroleum Resource through DPR had awarded the field to Petralon 54 Ltd and its partners during the last bid round, a decision that was countered by Eurafric through a petition to the House Committee on Petition.

• Woman, 4 kids killed in Zamfara airstrikes
• Buhari dines with N/Assembly members, vows to end insecurity

The DPR had revoked the licences of 11 marginal field operators for non-performance, including Dawes island marginal field located in OPL2006, Okrika, Rivers State.

DPR justified the revocation of the field licence on the ground that “Dawes Island marginal field was operated by Eurafric energy Limited for over 16 years without significant progress to attain full production and failure to submit a field development plan for the asset.”

But the DPR Director, Mr. Sarki Auwalu, said the decision was taken in the best interest of the nation.

The House Committee was quoted to have reversed the DPR’s award of the marginal field arguing that the action did not comply with the principles of equity and fair principles, saying Eurafric and Tako, and Petralon 54 are all guilty of the same offence, and not to show preference.

Commenting on this, the past Chairman, Society of Petroleum Engineers (SPE), Engr. Joe Nwakwe, said that there is a clear distinction between regulation and governance as he called for caution.

“I have not seen the comment by the House of Reps. What I suspect is that they may be pointing the DPR attention to the court case over the matter.

But it is clear that the Petroleum Act gives the power to award and revoke oil blocks to the Minister of Petroleum Resources and that power has been delegated to the DPR in this matter,” he said.