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FG transfers Shell’s license to NNPC, NPDC


The Nigerian government has revoked the operating license for oil mining Lease 11 in Ogoni land belonging to Shell Petroleum Development Company (SPDC) and transferred the assets to the Nigerian National Petroleum Corporation (NNPC) and its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

In a memo dated, March 1, 2019 and titled “Operatorship of Entire Oil Mining Lease (OML) 11” signed by Chief of Staff to President Muhammadu Buhari, Mr. Abba Kyari, the Presidency directed the NNPC and NPDC to take over the operatorship of the entire asset.

The president directed, “NNPC/NPDC to take over the operatorship from Shell Petroleum Development Company (SPDC) of the entire OML 11 not later than April 30th, 2019 and ensure smooth re-entry given the delicate situation in Ogoniland.”

The memo also directed NNPC/NPDC to confirm by 2nd May 2019 of the assumption of the operatorship.

The federal government recently denied SPDC renewal of OML 11 but decided to split it into three because “it is too large (2,800spkm).”

Shell has 45 per cent stake in OML 11 while the Federal Government through the NNPC has 55 per cent but Shell has been the operator of OML 11 even though it has not been operating the oil fields due to its role in Ogoniland crisis.

Source Vanguard
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