Federal government revokes Shell's licence for OML 11

Federal government revokes Shell's licence for OML 11

The licence for the operatorship of Oil Mining Lease 11 in Ogoni land granted to Shell Petroleum Development Company (SPDC) has been revoked by the federal government.

The federal government ordered that the licence be transferred to the Nigerian National Petroleum Corporation (NNPC) and its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

According to the memo signed by the chief of staff to President Muhammadu Buhari, Abba Kyari, the NNPC and the NPDC were directed to take over the operatorship of the entire asset, Leadership reports.

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Legit.ng gathers that the presidency stated in the memo that the entire OML 11 should be taken over by NNPC/NPDC not later than April 30, 2019.

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

Meanwhile, Legit.ng previously reported that the minister of state for petroleum resources, Dr Ibe Kachikwu, said President Muhammadu Buhari-led government had not spent a penny on the country's four refineries since his inception of the administration in 2015.

Kachikwu, who made the statement in Abuja on Thursday, December 13, 2018, said not spending a dime on the four refineries was an achievement not many had paid attention to.

Kachikwu made the assertion during a presentation of three years key achievements of the ministry and award to its staff.

He said: “What is important is that for the first time, the president had been able to say that he would repair the refineries without government money. Nobody had been able to give attention to that. No government one penny had been spent on any refinery.

“This is because every Turn Around Maintenance (TAM) that we have done in the past has always come up with stories. Wrong contracting models, wrong delivery, wrong work, and we don’t want to go that way."

According to Kachikwu, the target of the current administration is to bring in private sector investors to finance the repairs of the refineries.

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The minister added: “NNPC have struggled to find the financiers, now financiers have finally been found but to agree on terms have been difficult. I am hoping that by the end of this year and first quarter next year we would have completed the commercial aspect of this financial undertaking which is in the excess of over $2 billion.”

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Source: Legit.ng

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