Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

NPDC claims victory over Shell at OML 11

© BloombergSwamp and coast meet
Crude oil pollutes the waters of an estuary in this aerial photograph taken over B-Dere, Ogoni, Nigeria, on Saturday, Feb. 1, 2020.

Nigerian National Petroleum Corp. (NNPC) has claimed victory over Shell at OML 11, following an Appeal Court judgement in its favour.

The court, sitting on August 16, found against a Federal High Court ruling that Shell Petroleum Development Co. (SPDC) was entitled to renew the lease on OML 11. The High Court made this ruling in August 2019.

The Appeal Court found the Minister of Petroleum Resources had the authority to renew – or not – SPDC’s lease. The award to Nigerian Petroleum Development Co. (NPDC), NNPC’s upstream subsidiary, was therefore valid.

An SPDC representative said: “‘We are disappointed by the decision of the Court of Appeal which overturned an earlier decision of the High Court upholding our right to a renewal of OML 11 for 20 years. We have therefore filed an appeal against this judgment.

“Though we believe the SPDC JV has fulfilled its obligations under the Petroleum Act for the renewal of OML 11, our preference remains to engage the Nigerian authorities on available options for an amicable resolution of issues around the lease.”

NNPC head Mele Kyari said the ruling would see NPDC find a new path on OML 11. This will involve boosting production in a responsible and environmentally friendly way.

“We now have an opportunity to reconstruct a new beginning on OML 11, driven by global best practices and a social contract that would put the people and environment of the Niger Delta above pecuniary considerations,” Kyari said.

“This is a huge victory for the government and people of Nigeria as we now have the impetus to responsibly unlock the oil and gas reserves the block offers for the benefit of all Nigerians.”

NPDC intends to work closely with all stakeholders and partners, it said, with “responsible, smart engineering and environmental sustainability”.

Gas production from the block will be used to drive power plants and fuel industrialisation.

Next steps

Kyari noted Shell’s struggle to work on the block had been going on for more than 30 years. The judgement, he said, offers a new beginning.

“Further legal action by Shell will not only be futile, it would be depriving Nigeria of an opportunity to make meaningful gains from OML 11 when the nation needs all the revenue it can get to move Nigeria forward,” the NNPC head said.

Shell has not yet commented on the ruling. The company recently agreed to pay damages to a local community on the area to settle a long-running case on an oil spill.

Updated at 10:58 am with SPDC comment. 

Recommended for you

More from Energy Voice

Latest Posts