Atala Oilfield: Operator Pushes Back as Bayelsa Govt, Senate, Others Seek Revocation of Licence

Peter Uzoho

In response to the current moves by the Bayelsa State Government, the Senate and other vested interests pushing for the revocation of the Atala marginal field, formerly Oil Mining Lease (OML) 46, the current owner and operator of the asset, Halkin Exploration and Production Limited has said it remained the rightful owner and operator of the oilfield.

The company said it was currently working to bring the field to full production in a matter of months having invested millions of dollars in development of the asset and in touching the lives of the host communities, warning that it must not be distracted from its focus.

Addressing a press conference in Lagos, yesterday, the Director of Communications, Halkin, Mr. Osagie Amusa-Eke, said the recent news making the rounds about the asset contained only a one-sided story, asserting that the facts of the matter were distorted.

A few days ago, Governor Duole Diri of Bayelsa, who was accompanied by his predecessor, Senator Seriake Dickson amongst others had during their visit to President Muhammadu Buhari had requested the president to

restore the OML 46 to the state, which he alleged was unjustly revoked and awarded to a private company.

The Senate had also recently, after looking into a petition brought before it by the former co-owner of the oilfield, Hardy Oil Nigeria Limited, ordered the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to revoke the Atala field licence and give it back to its former owners.

The oil field was formerly owned by the trio of Bayelsa Oil Company Limited (BOCL), Hardy, and Century Exploration and Production Limited (CEPL).

But in reaction to the recent developments around the oil asset, Amusa-Eke said as a responsible private company only interested in conducting legitimate business, it was  “really unfortunate that Halkin Exploration and Production Limited has found itself distracted by this situation. Today we seek to set the record straight with nothing but the truths and facts of the matter.”

He explained that the Department of Petroleum Resources (DPR) now replaced by the NUPRC had in 2003, issued 13 licenses to indigenous oil firms but that on the expiration deadline of 2018, the Atala Field had yet to come into full production.

He maintained that following the failure to bring the field into full production, the Atala Field license was then revoked and returned to the basket as approved by President Buhari.

According to him, over a year after the license was revoked by the NUPRC, in line with Nigeria’s petroleum laws, Halkin legally applied and was duly awarded the OML 46 to operate, on the condition that the company brought the field into full production and a signature bonus of over $8 million dollars paid to the federal government.

Amusa-Eke further explained, “When there were petitions to Halkin being awarded the license, Halkin was cleared by NUPRC after a thorough investigation of Halkin’s application process. Within a year of taking over the Atala field, Halkin has invested millions of dollars into its operations in the field,with over a 100 Nigerian personnel operating on site.

“Halkin has continuously  engaged its host communities to foster a peaceful working relationship in its operating  environment and concluded corporate social responsibility (CSR) projects like solar lighting initiatives for host communities with plans to do more projects.  This is the reason why members of the host communities are delighted that Halkin is now in charge of the Oil field.

“Halkin is committed to bringing the Atala Field to full production to increase the Federal Government’s revenue. To this end, Halkin has made huge investments and will continue to do so for the duration of the license. This we will do with our top management team, made up of Nigerians from Bayelsa state and other Niger Delta states.

“All that we ask is that Halkin is allowed to do the work we’ve been awarded the license to do.”