Shell may lose operatorship of one of the most important oil blocks in Nigeria

Nigerian government directs NNPC/NPDC to take over the operatorship of entire OML 11 from Shell Petroleum Development Company not later than 30 April 2019.

Shell workers on site in one of the oil regions used to illustrate the story
  • Reports say Nigerian government will takeover operatorship of entire OML 11 from Shell Petroleum Development Company.
  • OML 11 partners involved the NNPC with the ownership of 55% shares, Shell (30%), Total (15% )and Agip with 5%.
  • Shell Nigeria is yet to make comment on the development.

The Nigerian government has asked its state-owned oil firm, Nigerian National Petroleum Corporation (NNPC) to take over Oil Mining Lease 11 operatorship from Shell Petroleum Development Company.

According to a report by THISDAY, the request was contained in a letter dated March 1, 2019, titled, ‘Operatorship of Entire Oil Mining Lease 11," directing NNPC/NPDC to take over the operatorship of entire OML 11 from Shell Petroleum Development Company not later than 30 April 2019.

No official confirmation from the Nigerian government on the matter at this moment.

Sources in the ministry of petroleum resources also told PUNCH that the alleged revocation of the operating licence of Shell was in line with the Joint Operating Agreement (JOA) signed by the joint venture partners.

OML 11 partners involved the NNPC with the ownership of 55% shares, Shell (30%), Total (15% )and Agip with 5%.

NNPC says no momo on the table yet

Ndu Ughamadu, NNPC spokesman, on Thursday, said the state-owned oil firm has not seen any letter or memo from the Presidency instructing it to take over operatorship of the entire OML 11 from SPDC, a local arm of Anglo-Dutch oil major, Shell.

Shell Nigeria refuses to comment

Shell Nigeria is yet to make comment on the development

OML 11 in Ogoniland

OML 11 in Ogoniland is one of the most important blocks in Nigeria with 33 oil and gas fields. Eight of the 33 oilfields are producing as at 2017.

The oil blocks have caused a dispute between the people of Ogoniland and Shell over the degradation of their environment by the oil giant.

The local arm of Shell, SPDC abandoned activities in the Ogoni section of the lease for about 26 years following the crisis that erupted after the killing of prominent Ogoni leaders including Ken Saro-Wiwa. In 2015 SPDC agreed to pay a settlement of $15.5 Million (N3 billion), just to resolve the case.

In 2016, the Nigerian government flagged off clean-up of the heavily polluted Ogoni land on the recommendation of the United Nation Environmental Programme, UNEP, in its report in 2011. Till date, the project is still on paper.

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