OML 11: SPDC heads to Supreme Court, as NPDC resumes operation after Appeal Court judgement

Oredola Adeola

Following the recent ruling of the Appeal Court , affirming Nigeria National Petroleum Corporation’s (NNPC) operatorship of the Oil Mining License 11 (OML 11), the Shell Petroleum Development Company of Nigeria Limited (SPDC) in a statement obtained by EnergyDay expressed disappointment at the judgement of the court, vowing to appeal the judgement.

Recall that the Appeal Court sitting in Abuja on August 16, 2021, upturned the August 23, 2019 ruling of the Federal High Court, Abuja which held that the Shell Petroleum Development Company (SPDC) was entitled to the renewal of the Lease on OML 11, affirming the right of the Minister of Petroleum Resources to decide whether or not to renew the OML 11 Lease in favour of SPDC.

In a statement by Bamidele Odugbesan, Media Relations Manager, Shell Nigeria, sent via a mail to EnergyDay, the company said it was engaging the Nigerian authorities on available options for an amicable resolution of issues around the lease.

SPDC said, “We are disappointed by the decision of the Court of Appeal which overturned an earlier decision of the High Court upholding our right to a renewal of Oil Mining Lease 11 for 20 years.

“We have therefore filed an appeal against this judgement. Though we believe the SPDC JV has fulfilled its obligations under the Petroleum Act for the renewal of OML 11, our preference remains to engage the Nigerian authorities on available options for an amicable resolution of issues around the lease.’

Earlier Nigeria National Petroleum Corporation (NNPC), stated that it had commenced operation on OML 11, adding that the Nigerian Petroleum Development Company Ltd, (NPDC) one of its subsidiaries, has taken over the assets and operations in full gear.

NNPC in that statement disclosed that it was working closely with all stakeholders and partners to achieve the new vision of “responsible, smart engineering and environmental sustainability,” and that the Federal Government has endorsed fl OML 11.