FG to Re-examine Ceding of Atala Oil Field, Promises Fairness

Emmanuel Addeh in Abuja

The federal government has pledged to re-examine the controversy surrounding the withdrawal of the operatorship of Atala oilfield from the Bayelsa government, with a view to finally putting the matter to rest.
The Minister of State, Petroleum (Oil), Senator Heineken Lokpobiri, gave the assurance when he was visited by the Governor of Bayelsa State, Mr Douye Diri at the ministry’s headquarters in Abuja.

A statement by the Special Adviser to the Minister on Media and Communications, Nneamaka Okafor, stated that during the meeting, Lokpobiri outlined the key objectives of the ministry aimed at fostering growth and sustainability in the energy sector.
These objectives, he said,  include increasing investments by International Oil Companies (IOCs) and boosting crude production to enhance Nigeria’s position as a leading player in the global energy market.

Furthermore, the minister emphasised the ministry’s willingness to collaborate with state governments, particularly Bayelsa state, in advancing energy sector transformation efforts.
“We are open to partnerships with Bayelsa state government for mutual progress,” stated the minister, highlighting the importance of cooperation in achieving shared goals.
“In response to  Diri’s appeal for the ministry intervention in restoring  the Atala oil field belonging to Bayelsa State, the minister assured prompt attention to the matter.

“We will look into the issue promptly and ensure fairness and equity in addressing state concerns,” the statement quoted the minister as affirming.
There had been for over three years, some controversy over the alleged wrongful re-allocation of Atala marginal oilfield ( OML 46)  owned by the Bayelsa state government to Halkin Exploration and Production Company Limited.
It started on April 6, 2020, when the then regulatory agency, the Department of Petroleum Resources (DPR) revoked the operating license of BOCL on the marginal oil field over an alleged lack of assets turnaround for the nation.

But the trio of BOCL, Hardy Oil Nigeria Limited and Century Exploration and Production Limited kicked against the revocation on the grounds that as original operators of the oil field, explorations and productions had been made and royalties paid into the account of the federal government.
The operators argued that at the time the field was purportedly revoked, the JV-partners had an outstanding 20,700 barrels of crude on the site.

 Diri, on behalf of the Bayelsa government, which owns 51 per cent equity in the oilfield had also taken the matter to the then President Muhammadu Buhari.
In October 2020, he directed  the immediate “reinstatement of the revoked licenses on a discretionary basis to qualified companies with consideration given to the previous operators of the respective fields subject to the demonstration of technical/financial capacity and payment of applicable Good and Valuable Consideration.”

But the then DPR, through a letter dated February 28, 2021,  signed by Auwalu Sarki, its head, reportedly on behalf of the then Minister of State for Petroleum Resources, Timipriye Sylva, awarded the oil field to  Halkin Exploration and Production Limited, which was not among the previous operators, leading to several petitions
But the statement yesterday stated that Diri’s visit reaffirmed the commitment of both federal and state governments to work together towards a sustainable, inclusive, and prosperous energy future for Nigeria.
The governor also extended warm congratulations to the minister on his appointment and commended his ‘exceptional’ performance in transforming Nigeria’s energy sector.
The visit, the statement stressed, underscored the commitment to collaboration and advancement in the nation’s energy landscape.

“I commend the minister for his remarkable performance in revitalising our energy sector and urge him to continue the good work,” Diri said.