The Nigeria Petroleum Development Company, a subsidiary of Nigeria National Petroleum Corporation (NNPC), has resumed oil production at Oil Mining License 11 (OML 11).

The development followed the recent Court of Appeal’s verdict which upturned the August 23, 2019 ruling of the Federal High Court which held that the Shell Petroleum Development Company (SPDC) was entitled to renew the lease on OML 11.

In its ruling on Monday, the court held that the minister of petroleum resources has the discretion whether or not to renew the OML 11 lease in favor of SPDC.

The court further held that the minister rightly exercised his discretion in awarding the OML 11 Lease to the NPDC.

The ruling ends 30 years of suspension of exploration activities on the oil bloc located in the Ogoni area of Niger Delta.

A statement issued by the Group General Manager, Group Public Affairs Division of the NNPC, Garba Deen Muhammad, quoted the NNPC Group Managing Director, Mallam Mele Kyari, as saying that the ruling has paved the way for the NPDC to lead a formidable OML 11 team to bolster productivity in a responsible, efficient, environmentally friendly, and sustainable manner.

“Accordingly, resumption of operations on OML 11 will demonstrate the NPDC’s full commitment to develop and add value to its communities and the nation as a whole.

“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.

“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.”

The NNPC Boss cautioned against any further legal challenge by the SPDC, saying that it is about time Nigeria derived the benefit of the OML 11 after over three decades.

“It is time to roll back the decades of despair and destruction with the emphatic Appeal Court ruling. It is time to unlock opportunities for economic development in the region.

“In the light of their inability to work on the Ogoni region of the block for over 30 years and the new beginning this judgment presents, further legal action by Shell will not only be futile, but it would also 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 Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has charged members of the Board of the NNPC Greenfield Refinery Limited (NGRL), to explore all available options to bring an end to the current challenge of petroleum products importation.

A statement today, August 19 by Garba Deen Muhammad, Group General Manager Group Public Affairs Division Nigerian National Petroleum Corporation NNPC, quoted Mallam Kyari as having spoken today while inaugurating the Board of the newly incorporated subsidiary of the Corporation, NNPC Greenfield Refinery Limited (NGRL), at the NNPC Towers, Abuja.

The Group Managing Director, who is also the Chairman of the NGRL Board, challenged members of the Board to focus on profitability in order to remain afloat and avoid liquidation.

“As a business, this is a big opportunity for us and this company’s balance sheet must change positively. Going forward, with the Petroleum Industry Act (PIA), I can tell you that if you continue to post negative for three years, you are out. So, there is really no excuse.”

Mallam Kyari advised the Board and Management Team of the new company to set up a proper structure with the require skills, technology and financing to drive the company’s operations, adding that he is optimistic that the company would be able to achieve its mandate.

“Our company must grow and we can’t do well except we are able to process our production whether it is the liquid or gas. If we don’t monetize it then we have done nothing. This is really a new chapter and we are committed to making it work.”

The NNPC helmsman said that all the Corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy security for the country.

In his remarks, the Alternate Chairman of the Board and Group Executive Director, Refinery and Petrochemicals, Engr. Mustapha Yakubu, said that the operations of the company would be guided by the principles of cost effectiveness in line with the new Petroleum Industry Act (PIA), saying that profitability would be the key focus.

Speaking in similar vein, the Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Engr. Bege Talson, said that the Division is working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000barrels per stream day (bpsd).

He pledged his team’s commitment to run the company profitably.

The NNPC Greenfield Refinery Limited is a subsidiary of the Corporation, set up in December 2020 with a mandate to oversee the establishment and operation of new refineries.

Other members of the Board include Group Executive Director, Finance & Accounts, Umar Ajiya; Managing Director of the Nigerian Gas Company (NGC), Engr. Oluwaseyi Omotowa; Managing Director of NNPC Retail, Mrs. Elizabeth Aliyuda; Managing Director of the Nigerian Petroleum Development Company (NPDC), Muhammad Ali-Zarah; and Tolulope Olubommo as Company Secretary and Legal Adviser.

Nigeria’s Minister of Niger Delta Affairs, Godswill Akpabio has said that the recent Presidential assent to the Petroleum Industry Bill, making it an Act, will bring to an end, decades of cheating of Niger Delta host communities by “big people” in government.

“The Petroleum Industry Act (PIA), when implemented, is going to assuage the feelings of the people of the host communities because they never had half a percent when oil was discovered in 1956 in Olobri.”

Senator Akpabio, who spoke today, August 19, to newsmen at the Presidential villa, Abuja about the performances of his ministry, said that the Bill had dragged on for too long because of what those who have been benefiting from the wrong system to the detriment of the host communities.

“My prayer is that the people would see this as a major step. People are arguing about percentages, I am not interested in that. We would manage this 3% but the major thing is to use it well.

“Even the small percentage that used to come to the NDDC, at least, they did not utilize it well. I believe the host communities would list out their problems, come together in unity and justify this action of Mr president and this action of Nigerians.

“This one is going directly to the host communities. We will do a lot of sensitization from the ministry, visit the people.

“The problem of the host community fund is not the percentage neither is the problem money. But how the money will be utilized judiciously and the same time, in a way where this is no acrimony. I don’t want that will break or cause communal clashes.

“So, I believe strongly as a ministry that is responsible for the peace in the region, we will take interest in how certain decisions are made as to who is a host community and who are those that should manage the fund.

“The law would have provided for this but at the same time, human being must also assist in the law in such a way that there is no acrimony.”

The Minister insisted that what is important is not the percentage, saying that some communities could make do with any percentage so far it would enable them to do basic human needs, such as solar powered toilet, drinking water, water tankers supplying.

He said that now with the PIA, the communities would be able to do certain things for themselves without waiting on oil companies, the federal government or the state to do it for them.

“When we look at the Act and know the composition of those who should be in charge of the money, we will also make our inputs. And it should be mostly project based. It shouldn’t be like a normal contract. It should almost be like direct labour. It is a major leap forward.

“Today, majority of Niger Deltans are very happy that the government has decided to deal with the host communities directly. This one will touch their lives directly. I also know that some communities will fight but of course,  it is expected. Most of those things would be settled.”