The Federal High Court in Yenagoa, Bayelsa, has delivered a landmark ruling reaffirming Halkin Exploration and Production Limited as the rightful owner and operator of the Atala Marginal Oil Field (OML 46), bringing an end to a prolonged legal dispute over its ownership.
In his judgment, Honourable Justice Ayo Emmanuel dismissed a suit filed by Bayelsa Oil Company Limited, ruling that the case was statute-barred and that the plaintiffs lacked the legal standing to challenge the re-award of OML 46 to Halkin Exploration.
In its reaction, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which filed an objection to the suit by Bayelsa Oil Company, said: “This judgment upholding Halkin E&P’s ownership of OML 46 marks a significant victory for the upstream oil and gas sector.”
Speaking through its counsel, Mr. Chikaosolu Ojukwu, S.A.N., the NUPRC added that; “This outcome underscores the seriousness and integrity behind the bidding and awarding processes of marginal fields and deep offshore assets.”
Further speaking, counsel to NUPRC, Mr Ojukwu, S.A.N., affirmed that “Under the leadership of Engr. Gbenga Komolafe, FNSE, OFR, the NUPRC “has consistently upheld the rule of law, ensuring that all operators in the upstream sector comply with regulations.
“This commitment has contributed to improved crude oil production and promoted the Seven Pillars of Divestment, fostering sustainable development within the industry.”
In its ruling on the objection filed by the NUPRC and Halkin Global Investment Limited’s counsel Mr Ademola Abimbola, S.A.N., the court further held that the plaintiffs failed to meet the required legal conditions before initiating the lawsuit, making their claim an abuse of court process.
The dispute dates back to February 25, 2003, when the Department of Petroleum Resources (DPR) awarded OML 46 to Bayelsa Oil Company Limited. However, on April 6, 2020, the Federal Government revoked the lease due to the company’s failure to develop the field and bring it into full production. Years after Bayelsa Oil Company failed to contest the revocation, OML 46 was re-awarded to Halkin Exploration on July 7, 2021.
Seeking to overturn this decision, Bayelsa Oil Company filed a lawsuit on June 20, 2024, at the Federal High Court, Yenagoa Judicial Division, requesting a declaration that the re-award of OML 46 to Halkin Exploration was unlawful, null, and void.
On July 18, 2024, Halkin Exploration, represented by its counsel, Mr. Kehinde Ogunwumiju, S.A.N., filed a Notice of Preliminary Objection, challenging the court’s jurisdiction.
In its ruling yesterday, the court, citing Section 2 of the Public Officers Protection Act and Section 307 of the Petroleum Industry Act 2021, which bar certain claims after a specified period, dismissed the suit by Bayelsa Oil Company in its entirety and reaffirmed Halkin Exploration’s legal ownership and operational rights over the Atala Marginal Oil Field.
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