Bayelsa vows to challenge revocation of Atala OML 46 oilfields license

Following the revocation of a marginal Oil Mining Lease (OML) 46 license issued to the Bayelsa State in 2013 by the Department of Petroleum Resources (DPR), the state government says it is studying the case and possibly challenge the decision of the Federal Government.

DPR, on April 6, announced the revocation of 11 of the 13 marginal fields licenses it issued to indigenous oil firms to build capacity and promote the participation of Nigerians in the oil sector.

The licenses were originally issued in 2003, revalidated in 2013, and the companies were expected to bring the fields into production in five years but as of 2018 deadline, most of the fields remained inactive.​

In a reaction to the development,  Daniel Alabra, Acting Chief Press Secretary to Gov Douye Diri of Bayelsa, noted that the state was concerned about the revocation and would take steps to reverse it.

Alabra said, on Saturday, that the decision of the DPR on Atala oilfields asset which has been developed to the point of ‘test production’ by the immediate past administration was regrettable and erroneous.

“The Governor of Bayelsa is being briefed on it and he is taking a holistic view to arrive at an informed decision, as a person he does not react to policy issues based on emotions and sentiments.

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“Do not forget that the Bayelsa government holds 40 per cent equity in the oil block along with other investors who operate the field, the state does not run the oil business on a day to day basis.

“So consultations are ongoing to ascertain what led to this and take steps to correct the error because Atala field has not been inactive as alleged by the DPR and Petroleum Ministry.

“For the records, the race for Bayelsa government to participate in the oil and gas sector started with the first civilian administration in 1999 when the Bayelsa Oil Company was formed.

“We forget that former administrations have paid little or no attention until Gov Dickson came on board and got the license in 2013 and developed the oilfield to a point that we have oil produced ready for sales.

“So what did other administration including Ex-Gov Timipre Sylva, who is currently the Minister of State for Petroleum, do when he was Governor?

“The current governor, who has spent less than two months in office, is committed to enhancing the participation of our people and will ensure that Atala oilfield is developed to its full potentials,” Alabra said.

On the viability of investment in the oil sector in a regime of low oil prices, the CPS said that there was hope that the prices would rebound in the nearest future, adding that Bayelsa would retain its interests in Atala fields.

He said the government was adopting an economic strategy that would shield the state from the shock of low oil prices as the state relies heavily on oil derivation proceeds which drops with oil prices on the international market.

According to him, the Bayelsa government would soon unveil its plan on diversifying the revenue sources to all stakeholders. ​

NIGERIAN TRIBUNE