The Nigerian Federal Government has revoked the oil Mining licenses of 11 companies in the oil and gas sector.
The affected oil companies all have their operations in Nigeria’s marginal oil fields.
See Also: Forbes Records Fewer Billionaires as Coronavirus Hits Hard at Global Finance
According to a report by the Guardian newspaper, the affected oil companies include: Movido- Ekeh, Goland- Otiti, Independent Energy – Ofa, Associated – Tom Shot Bank, Bayelsa – Ayala, Sogenal- Akeni, and Delsigma Ke. Others include, Bicta- Ogedeh, Guarantee- ororo, Eurafic-Dawes Island, and Sahara Tsekelewu.
Unconfirmed reports say the companies were served letters on Monday to hands off the assets, while a spokesperson for the Department of Petroleum Resources (DPR), who didn’t confirm the incident stated that it was within the rights of the Federal Government to terminate the licenses if it was indeed true.
Mr. Osu insisted that it was in the best interest of Nigeria if the Federal Government revoked the licenses because it has become necessary to make maximum use of available resources.
The licenses being allegedly revoked was offered by the Federal Government in 2013. The fields were expected to start producing in five years but an extension was granted when this was not forthcoming.
Some of the companies affected have reportedly gone far with operations however and were awaiting the permission of the DPR to conduct well tests, begin production, evacuate and sell on the global market.
Some others have already produced oil from the affected fields and kept them in storage units waiting for DPR permission to sell.
Leave a Reply