Court Orders FG To Renew Shell’s OML 11 For 20 Years

By Augustine Adah

The Federal High Court in Abuja on Friday ordered the Minister of Petroleum Resources to grant the renewal of the Oil Mineral Lease 11 to Shell Petroleum Development Company, SPDC, of Nigeria for 20 years.

Justice Taiwo Taiwo, in his judgment delivered on Shell’s suit, ruled that renewal would be for 20 years and not 30, as requested by the company.

The suit by Shell was instituted against the Minister of Petroleum Resources and the Minister of State when the government refused to renew its operations license.

President Muhammadu Buhari had in March this year ordered the Nigerian National Petroleum Corporation,  NNPC, to take over the operatorship of the entire Oil Mining Lease 11 from Shell Petroleum Development Company.

 The government hinged its refusal to renew the license on the best interest of the country.

It was also gathered that the NNPC owns 55 per cent shares in the OML 11 partnership, while Shell, Total and Agip own 30, 15 and five per cent respectively in the joint venture.

 It is not yet clear whether the Federal Government would appeal the judgment.

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