Senate investigates alleged re-allocation of Atala oil field

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is being investigated by the Senate Committee on Ethics, Privileges, and Public Petitions for reportedly assigning the Atala Marginal Oil Field (OML 46) in Bayelsa to a different company.

Due to the purported revocation and illegal reassignment of the oil field owned by the Bayelsa government to Halkin Exploration and Production Company Limited, the NUPRC came under scrutiny in the senate (Halkin E&P).

On the weekend in Abuja, Sen. Ayo Akinyelure, the committee's chairman, announced this.

According to news reports, the Department of Petroleum Resources (DPR), currently known as the NUPRC, cancelled the operating licence of the Atala JV Partners on the Marginal Oil Field on April 6, 2020, sparking the start of the oil field's problems.

This was allegedly because the Atala Field couldn't be put into production.

The trio of Century Exploration and Production Limited (CEPL), Hardy Oil Nigeria Limited, and BOCL, however, fought back against the cancellation.

This was justified by the fact that as the oil field's original operators, explorations, productions, and royalties had been made and paid into the Federal Government of Nigeria's account, and that at the time the field was allegedly revoked, the JV partners had an outstanding 20, 700 barrels of crude on the property.

Specifically, Akinyelure said that, “NUPRC which is now the new regulatory agency that you represent here is not expected to take side on the disputed oil field.

“Since DPR is inherited by NUPRC, the new agency, must furnish this committee with written directive from President Buhari , upon which award of the Atala Oil Field was made to Halkin E and P and not previous operators as clearly stated in the presidential directive quashing the revocation.

“Perhaps, in running away from the fact and getting away with the oil field award, Halkin stopped appearing before this committee after previous appearances by resorting to litigation in the court of law” .

“What this Committee wants from NUPRC, being the inheritor of DPR , is written presidential directive on the Oil Field award to Halkin E&P and nothing more”.

The various parties are expected again at the senate panel this week.