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Business News

FG’s plan for N350 billion revenue from oil field licensing suffers setback

The 2 marginal fields–the Ororo field, known as OML 95, and the Dawes Island marginal oil field, formerly called OML 54–were among 11 oil licenses that were revoked by the Department of Petroleum Resources (DPR) in April.

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FG’s plan for N350 billion revenue from oil field licensing suffers setback

The Federal Government’s plan to boost its revenue in the face of dwindling oil prices seems to have suffered a setback, as two Federal High Court judges have blocked the government’s effort to revoke two oil field licenses.

This will negatively affect the full licensing round for marginal fields, which the Federal Government plans to launch in the month of June.

The 2 marginal fields–the Ororo field, known as OML 95, and the Dawes Island marginal oil field, formerly called OML 54–were among 11 oil licenses that were revoked by the Department of Petroleum Resources (DPR) in April. These oil fields were part of the initial 56 fields in the marginal field licensing round.

READ MORE: Justice Gone Awry? The Confounding Case of Petro Union Limited

Justice Oluremi Oguntoyinbo of the Federal High Court in Lagos, on May 29, granted the order of interim injunction against the Minister of State for Petroleum Resources and the Ministry, following a May 18 ex parte application filed by Euratic Energy Ltd for the Dawes Island marginal field, which is located in the swamp terrain about 15km southwest of Port Harcourt, Rivers State.

The Judge had restrained the defendants, i.e., the Ministry of Petroleum Resources, from disposing, offering, selling, alienating, dissipating, attaching or assigning the Plaintiff’s assets of the Dawes Island marginal oil field.

As for the Ororo marginal field, the presiding Judge of a Federal High Court in Lagos, Muslim Sule Hassan, on May 28, granted an order of interim injunction against the defendants, following a motion ex parte filed by Owena Oil and Gas Ltd.

READ ALSO: PenCom dissolves interim management committee for First Guarantee Pension, appoints new board

Justice Hassan ordered the parties to maintain status quo in relation to the revocation of the oil license, pending the determination of the motion on notice pending before the court.
This means that the petroleum ministry will not be able to include these oil fields in the planned marginal fields licensing later this month.

Both the Ministry of Petroleum and the DPR did not immediately comment on the new development.

Sometime last month, the Federal Government had disclosed that it was going to delay major licensing rounds for the marginal oil fields due to the coronavirus pandemic. This has seen the revenue projection from signature bonuses drop from N939 billion to N350 billion.

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It was reported that the Federal Government, in April, revoked the mining licenses of 11 oil and gas firms operating in the marginal fields over their inability to turn the assets around, despite being given enough time.

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The government said that it was in the best interest of the country to revoke those licenses, as there was urgent need to derive maximum value from available resources, especially in the face of dwindling revenue.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Coronavirus

Update: Health Minister states side effects of COVID-19 vaccines

Dr. Osagie Ehanire has disclosed the side effect of the COVID-19 vaccines.

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Nigeria to vaccinate 20 million people against Covid-19. Chinese Engineering firm donates medical supplies to Nigeria

Minister of Health, Dr. Osagie Ehanire has stated the side effects of the COVID-19 vaccines, which he said is mild.

The minister disclosed this during the live broadcast when President Muhammadu Buhari took his vaccine shot on Saturday.

According to the Minister, the reactions are usually mild and only few people had complained of mild pain in the part of the body they got the shot.

He said, “It is not everybody that complained of reactions/side effects but few had complained of mild pain at the part of the body they got the shot.

”Usually manufacturing vaccines take not less than 4 years but this only took about 1 year, which is the reason some people are apprehensive about the vaccines. This was manufactured in the United Kingdom and has been certified.”

Ehanire, explained that the jab is painless as a narrow gauge syringe was used with a small quantity injected in the upper arm.

He added that the after-effects are mild but accompanied by little discomfort in the area that was injected.

Present at the brief ceremony were the Secretary to the Government of the Federation (SGF) Mr Boss Mustapha; Minister of Information and Culture, Alhaji Lai Mohammed; the Chief of Staff to the President, Professor Ibrahim Gambari and other members of the Presidential Task Force (PTF) on COVID-19, senior government officials and journalists.

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Coronavirus

Update: President Buhari, VP Osinbajo get COVID-19 vaccine shots

President Buhari and VP Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.

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President Muhammadu Buhari and Vice President Yemi Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.

President Buhari and VP, who received his COVID-19 vaccine shot on Live TV broadcast, urged Nigerians to emulate him and do the same to curb the pandemic in the most populous black nation.

 

Both were administered their jabs, on Saturday morning, at the Banquet Hall of the presidential villa, Abuja at a ceremony broadcast live on national television.

Their inoculation followed their e-registration and filling out of their vaccination cards by the Executive Director of the National Primary Health Care Development Agency (NPHCDA), Faisal Shuaib.

Vaccination of Buhari was done by Chief Personal Physician to the President, Dr Suhayb Rafindadi.

Osinbajo was also vaccinated by his personal physician, Dr Nicholas Audifferen.

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