Bayelsa Host Communities Laud Revocation of Atala Oilfield

Emmanuel Addeh

The host communities of the revoked Atala oilfield in Bayelsa State have lauded the decision by the federal government, noting that for over 17 years that the asset was awarded, no oil was produced.

The spokesman of the Atala Host Community Watchdog (AHCW), Mr. Dubaowei Jacob, in a statement in Abuja, noted that the communities had taken it upon themselves to clear the air and debunk the lies manufactured by certain individuals on the issue.

The communities noted that the Atala oilfield (OML 46) was awarded on February 25, 2003, explaining that in 2010, seven years after the initial award, the Bayelsa Oil Company Limited (BOCL) was granted a five-year extension to finally bring the field into full-scale production, without any progress.

They stated that the extension of the Atala marginal licence expired on March 15, 2015, wherein the Department of Petroleum Resources (DPR) conducted a performance evaluation of the activities in the field and its operational position and discovered that BOCL had failed to achieve production within the stipulated timeframe.

According to the host communities, it was crystal clear that the inability of BOCL to bring the Atala marginal field into production after more than 10 years of operating the field was the basis of the first revocation.

“However, it is common knowledge that the federal government had always bent over backwards to accommodate and assist indigenous operating companies find their feet.

“So, in a bid to further support BOCL, the minister of petroleum resources at the time approved the renewal of the Atala field licence for a period of 18 months with effect from 1st May, 2016.

“This approval lapsed on December 1, 2017 and from an official standpoint, the Atala field licence awarded to BOCL had expired,” the host communities stated.

The communities argued that the DPR, in its renewal letter, had clearly stated that “this renewal shall be the final chance for you to bring the field into production, failing which the field shall be withdrawn without any further recourse to you”.

According to the hosts, the federal government gave BOCL ample time even after the Atala licence had officially expired in 2017, to develop the field, stressing that the admission of “persistent non-alignment of BOCL and Century Exploration and Production”, caused total stagnation of activities in Atala, the resultant effect, which was the eventual revocation of the field, was enough reason to revoke the licence.

While thanking the president for revoking the Atala field and giving it to a company that is ready to finally produce the field in a business-like fashion, the hosts stressed that the decision had shown that the federal government has great concern for the people of Bayelsa.