FG revokes eleven oil mining licenses

Oil Mining Licences (OML) of 11 oil and gas companies operating in the Marginal Fields have been revoked.

The affected companies are Movido–Ekeh, Goland – Otiti, Independent Energy – Ofa, Associated-Tom Shot Bank, Bayelsa – Ayala, Sogenal – Akeni and Delsigma–Ke.

Others are Bicta–Ogedeh, Guarantee–Ororo, Eurafic-Dawes Island and Sahara–Tsekelewu.

The companies were served letters on Monday to hands-off the asset, a spokesperson for Department of Petroleum Resources, Paul Osu, who did not directly confirm the development, requesting a time to establish the truth, justified any decision to terminate the licenses, stressing that the companies have been offered enough time to turn the assets around.

Osu insisted that should the Federal Government revoke the licence, it was in the best interest of Nigerians, particularly as there were needs to derive maximum value from available resources.

However, a number of the companies have reportedly gone far in their operations and are simply waiting for DPR to grant necessary permits to conduct well tests, start production, evacuate and sell.

Some of the companies have reportedly produced oil, stored in storages as some currently have their crude in export pipelines.

The licences were offered in 2013 and the companies were expected to bring the fields into production in five years but were offered an extension.

Some of the operators contacted declined comment, stating that they would need to convene their boards before taking a stand.