Reps ask NNPC to suspend planned sale of OML 11 asset

The house of representatives has asked the Nigerian Petroleum Development Company (NPDC) to suspend its planned auction of the $1 billion oil mining lease (OML) 11 asset for a meagre sum of $250 million.

NPDC, which operates the OML 11, is a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

The resolution was reached following the adoption of a motion of urgent national importance by Victor Mela, a member of the house, at a plenary session on Wednesday.

Moving the motion, Mela said the oil field under OML 11 was operated by the Shell Petroleum Development Company (SPDC) joint venture (JV).

He said the field had been idle since the company was forced out of Ogoniland in 1993.

Mela said following a court of appeal judgement in August 16, 2021, the SPDC JV lost its right to the renewal of the operating licence.

He added that there were unresolved issues between the government and the host communities of Ogoni, which were fueling resistance and restiveness among the people.

The lawmaker expressed concern over a claim that the government was allegedly involved in a unity arrangement to auction OML 11 asset to Sahara Energy Ltd, for a paltry sum of $250 million against the $1 billion offered by the SPDC.

Mela said there was a need to clarify and resolve issues associated with the planned auction among other matters.

The house, therefore, mandated its committee on petroleum upstream to investigate the planned auction among other matters and report back within four weeks for further legislative action.