FG ORDERS NNPC TO TAKE OVER OIL WELL FROM SHELL
Originally published on Mar 15, 2019
President Buhari has ordered the Nigerian National Petroleum Corporation (NNPC) to take over the management of Oil Mining Lease (OML) 11 from Shell Petroleum Development Company (SPDC), at the end of next month.
A letter dated March 1, 2019 from the State House, Abuja, which was addressed to the Group Managing Director of NNPC, Mr. Maikanti Baru, signed by the Chief of Staff to the President, Mr. Abba Kyari, directed the corporation to take over the operatorship of OML 11 not later than April 30, 2019.
It equally instructed NNPC, represented by its upstream arm, Nigerian Petroleum Development Company (NPDC) to confirm the assumption of the operatorship by May 2 2019.
NPDC is the flagship oil exploration and production subsidiary of the NNPC and the liaison office of the company acknowledged receipt of the letter on March 5, 2019.
OML 11 earlier operated by SPDC, lies in the southeastern Niger Delta and contains 33 oil and gas fields of which eight of them have been producing from 2017.
Shell has 45 per cent stake in OML 11 while the Federal Government through the NNPC has 55 per cent but Shell has been the operator of OML 11 but has not been operating the oil fields due to its role in Ogoniland crisis.