- The production of crude oil by the Nigeria National Petroleum Corporation (NNPC) in the Ogoni region has resumed
- This is coming more than 30 years of legal tussle with the Shell Petroleum Development Company (SPDC)
- NNPC Group Managing Director, Malam Mele Kyari has decribed the development as a huge victory for Nigeria
The Nigeria National Petroleum Corporation (NNPC) can breath a sigh of relief as crude oil production in the Ogoni region, Niger Delta has resumed.
Daily Trust reports that the development is following an Appeal Court judgment affirming its operatorship of the Oil Mining License 11 (OML 11).
This is coming after more than 30 years of legal tussle with the Shell Petroleum Development Company (SPDC) over the entitlement to a renewal of the lease.
Back on August 23, 2019, the Federal High Court, Abuja held that SPDC was entitled to the renewal of the Lease on OML 11, however, NNPC went to an Appeal Court to challenge the ruling.
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Garba Deen Muhammad, the group general manager, Group Public Affairs Division of the NNPC, , quoted the group managing director, Malam Mele Kyari, as saying the resumption of operations will demonstrate its full commitment to develop and add value to its communities and the nation.
The Cable also reports that Muhammad in a statement on Friday, August 20, further stated that the NPDC has taken over the assets and operations are in full gear.
He cautioned SPDC against taking any further legal action, adding that it was about time Nigeria derived the benefit of the OML11.
FG announces plan to scrap NNPC within 6 months, gives reason for decision
Earlier, a report indicated that the federal government intends to scrap the NNPC. The group managing director of the NNPC told Arise TV on Monday, August 16, that the Nigerian-owned oil company will cease to exist within the next six months.
He said a new company that will be known as a CAMA Company will be incorporated and operate under the Company Allied Matters.
He explained that by virtue of the Petroleum Industry Act, all liabilities and assets of the NNPC will be transferred to the new company.
Customs to NNPC: Set up filling stations in neighbouring countries
According to him, this will help tackle oil smuggling.He disclosed this on Monday at an interactive session organised by the house of representatives committee on finance.