OML 245: FG Clears Air On Reported Move To Grant Shell, Eni Oil Mining Licence

The Federal Government has refuted reports that it granted two multinational oil companies, Shell Nigeria Plc and Eni Oil, licences to explore the OML 245 oil bloc.

A non-governmental organisation, Human and Environmental Development Agenda (HEDA), had raised concerns over President Bola Tinubu’s alleged move to grant multinational oil companies, Shell Nigeria Plc and Eni Oil mining licences.

In a statement on Tuesday, HEDA said President Tinubu is reported to be on the verge of granting the two oil firms the oil mining licence as they have demanded for the offshore OPL 245 field.

But speaking with reporters on Wednesday in Abuja, the Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, said the OML 245 has been subject to various litigations and discussions across different jurisdictions before a settlement was reached.

The minister said the core issue revolves around the agreement between the Federal Government, Shell and ENI, wherein the Federal Government facilitated the transfer of rights from Malabu to Shell/ENI in exchange for consideration.

According to the minister, the process of agreements and the efforts invested in resolving the disputes were conducted transparently and in accordance with established legal frameworks.

He said throughout the legal proceedings, there has been no evidence indicating any criminal liability on the part of the Federal Government or any involved parties.

The minister stated that all legal battles across multiple courts have concluded with outcomes affirming the absence of criminal wrongdoing.

He said: “In light of recent discussions and misconceptions surrounding the resolution of issues around OML 245, I aim to offer clarity and dispel any misinformation that may have arisen.

“The matter concerning OML 245, a significant oil block within our nation’s territory, has been subject to various litigations and discussions across different jurisdictions. It is essential to understand the intricacies of the agreements and the efforts invested in resolving the disputes surrounding this block.

“The core issue revolves around the agreement between the Federal Government, Shell and ENI, wherein the Federal Government facilitated the transfer of rights from Malabu to Shell/ENI in exchange for consideration. This process was conducted transparently and in accordance with established legal frameworks.

“Throughout the legal proceedings, there has been no evidence indicating any criminal liability on the part of the Federal Government or any involved parties. All legal battles across multiple courts have concluded with outcomes affirming the absence of criminal wrongdoing.”

On the complexity surrounding OML 245, the minister said President Tinubu has demonstrated astute leadership by directing efforts towards resolving the lingering issues.

He added: “On the complexity surrounding OML 245, President Bola Ahmed Tinubu has demonstrated astute leadership by directing efforts towards resolving the lingering issues. Meetings and discussions have been convened with stakeholders from various countries, including the Netherlands, the UK and Milan, to explore avenues for an amicable resolution.

“With just a 5% reserve investment ratio in our oil sector, which is the lowest globally in the last five years, there is an urgent need to boost our investment in the sector to avert an imminent economic crisis.

“If we resolve all issues around OML 245 and other oil wells, with our investment friendliness, it will attract investment running into billions of dollars, potentially changing the narrative significantly. Let me stress that President Bola Ahmed’s interest lies in the transformation of our vast natural resources into prosperity for the nation.

“We have continued to leverage the positive impact of the PIA and the mutually beneficial policies of the President Bola Ahmed-led Federal Government to attract prospective investors, but we all must be patriotic in supporting these pursuits.

“We must remain patriotic in our statements and continue to build faith in the #RenewedHope administration because the President has good intentions for the nation and has supported the resolution of all issues around OML 245.”