– Judge rules Ministry of Petroleum acted unlawfully
– Orders licence returned to Eurafric Energy
Lagos — A Federal High Court in Lagos has delivered a landmark judgment, declaring the Federal Government’s 2020 revocation of the Dawes Island Marginal Field licence unlawful and void.
Justice A. O. Awogboro, in a decisive ruling on Thursday, nullified the licence revocation against Eurafric Energy Limited, stating the action by the Ministry of Petroleum Resources was
“unlawful, procedurally flawed and unjustified.”
The court set aside the entire process, including the subsequent award of the lucrative oil field to Petralon 54 Limited and related agreements with the NNPC.
Justice Awogboro found the ministry breached multiple statutory procedures, failed to grant Eurafric a fair hearing, and acted on an invalid premise. The judge emphasized that the government’s stated reason for revocation—alleged failure to develop the field—was contradicted by evidence showing Eurafric had successfully produced over 62,000 barrels of crude from the field between 2016 and 2018.
Furthermore, the court ruled that the ministry was effectively barred from revoking the licence after it had approved crude oil evacuation from the same field in January 2020.
Consequently, the judge ordered the immediate renewal of the Dawes Island licence to Eurafric Energy and issued permanent injunctions blocking the government from reallocating the field.
The judgment, backed by over 50 exhibits, represents a significant legal rebuke to the ministry’s handling of the marginal field. Officials at Petralon 54 Limited, the company that had taken over the field, declined to comment.
