Reps halt $250m auction of OML 11 over alleged covert arrangements 

Reps fault government's auction of assets to Sahara Energy for a paltry sum of $250 million as against the one billion dollars offered by SPDC Limited, insists there is need to urgently resolve issues associated with the planned auction 
adminDecember 29, 20223 min
Reps fault government’s auction of assets to Sahara Energy for a paltry sum of $250 million as against the one billion dollars offered by SPDC Limited, insists there is need to resolve issues associated with the planned auction urgently 
OML

The House of Representatives has urged the Federal Government and the Nigerian Petroleum Development Company (NPDC) to suspend the planned auction of the Oil Mining Licence (OML) for the sum of 250 million dollars to Sahara Energy Resource Limited.

It also resolved to mandate the House Committee on Petroleum Upstream to urgently investigate the planned auction, among other matters and report back within four weeks. This development followed the resolution of a motion under Matters of Urgent National Importance moved by Rep.Victor Mela (PDP, Adamawa) at plenary on Wednesday.

Rep Mela, while leading the debate on the floor, noted the need to uncover every covert arrangement concerning the allegation.

 

 

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“The House notes that the oil fields under (OML) 11 were formerly operated by the Shell Petroleum Development Company (SPDC) joint venture and has laid idle since Shell was forced out of Ogoni Land in 1993.

Also notes that by a Court of Appeal judgment of 16 August 2021, the SPDC joint venture lost its right to renewal of the operating license.

Aware that the OML 11 asset was thereafter renovated to an operating subsidiary of the Nigerian National Petroleum Company Limited (NNPCL).”

 

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Furthermore, the lawmakers expressed concern over the unresolved issues between the government and the host communities and the Oil Mining License (OML) 11 and other oil-producing communities that have fueled unrest among the people.

“The government is involved in an under the table covert arrangements to auction OML 11 assets to the Sahara Energy Resource Limited for a paltry sum of 250 million dollars as against the one billion dollars offered by SPDC Limited. There is need to urgently clarify and resolve issues associated with the planned auction among other matters,” the lawmakers insisted.

The motion was unanimously passed when the presiding officer, Speaker Femi Gbajabiamila, put the question.

 

 

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