Nigeria National Petroleum Corporatio (NNPC) who enjoys a total of 95 percent of the country’s foreign exchange revenue operations has resumed crude oil production in the Ogoni region after an Appeal Court judgment affirmed its operator-ship of the Oil Mining License 11 (OML 11).

According to Freelanews research this is coming after more than 30 years of a legal battle with Shell Petroleum Development Company (SPDC) about the right to extend the Lease on OML 11.

The Federal High Court, Abuja had on August 23, 2019, held that the Shell Petroleum Development Company (SPDC) was entitled to the renewal of the Lease on OML 11.

The NNPC thereafter went to an Appeal Court to challenge the ruling. But the Appellate Court in Abuja on Monday held that the Minister of Petroleum Resources has the discretion whether or not to renew the OML 11 Lease in favour of SPDC.

The Court further held that the minister rightly exercised his discretion in awarding the OML 11 Lease to NPDC, a subsidiary of NNPC.
Friday, a statement by the Group General Manager, Group Public Affairs Division of the NNPC, Garba Deen Muhammad, quoted the NNPC Group Managing Director, Malam Mele Kyari, as saying that the ruling had paved the way for the NPDC to lead a formidable OML 11 team towards bolstering productivity in a responsible, efficient, environmentally friendly, and sustainable manner.

As a result, he stated that the restart of operations on OML 11 will reflect the NPDC’s complete commitment to developing and adding value to its communities and the nation as a whole.

“We now have an opportunity to rebuild a fresh beginning on OML 11, guided by global best practices and a social contract that prioritizes the Niger Delta’s people and environment over monetary concerns.

“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,” Malam Kyari stated.

According to the announcement, the NPDC has taken over the assets and operations are back up and running.

It went on to say that the business is working closely with all stakeholders and partners to fulfill the federal government’s new goal of “responsible, smart engineering, and environmental sustainability” for OML 11.

The NNPC GMD stated that the NPDC would pursue the promotion of clean energy via its gas production with prospects of gas-to-power initiatives to “light up opportunities in the region,” and provide the much-deserved industrialization.

The statement noted that the environment would be a top priority for NPDC’s operations, as well as the implementation of a robust host community engagement strategy to address subsisting issues while agreeing to a transparent engagement model going forward.

The NNPC cautioned against any further legal challenge by the SPDC, stressing that it was about time Nigeria derived the benefit of the OML11 after over three decades.