A Review of the Nigerian Energy Industry

‎Reps query sale of oil licence by Shell

House-of-Reps-session27 May 2014, Abuja – The House of Representatives on ‎Tuesday queried the alleged sale of Oil Mining Lease-29 and other OMLs by Shell Petroleum Development Company.

In a resolution in Abuja, it directed an ad-hoc committee to investigate the action of Shell within two weeks.

The resolution came after a motion moved by one member, Mr. Alphonsus Gerald.

The motion had indicated that the sales contravened Item 12(1) of the First Schedule to the Petroleum Act.

He said the law “stipulates that 10 years after the grant of an OML, one-half of the area of the lease shall be relinquished to the Federal Government.”

Gerald informed the the House that in the case of OML-19, SPDC had possessed it for over 52 years without relinquishing one-half of the area in compliance with the law.

He alleged that aside OML-29, the oil company had sold other OMLs “in direct contravention of the Act and undermines national interest.”

The lawmaker added that Shell and other oil majors hid under the cover of “waivers” granted by the Minister of Petroleum Resources under the Act to sell OMLs.

Gerald did not clarify whether OML-29 was sold under the tenure of the current minister, Mrs. Diezani Alison-Madueke.

The House passed the motion in a unanimous voice vote at the session presided over by the Speaker, Mr. Aminu Tambuwal.



– The Punch

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