The Federal High Court in Yenagoa, Bayelsa, has delivered 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 (BOCL), 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, (SAN) the NUPRC added: “This outcome underscores the seriousness and integrity behind the bidding and awarding processes of marginal fields and deep offshore assets.”
Besides, Ojukwu affirmed that “Under the leadership of Gbenga Komolafe, the NUPRC has consistently upheld the rule of law, ensuring that all operators in the upstream sector comply with regulations.”
He added: “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 (SAN), 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 then 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 (SAN) filed a notice of preliminary objection, challenging the court’s jurisdiction.
But in its ruling on February 24, 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.
According to the judge, Section 2(a) Public Officer Protection Act stipulates that, “Where any action, prosecution, or other proceedings is commenced against any person for any act done in pursuance or executions or intending execution of any act or law or any public duty or authority, or in respect of any alleged neglect or default in the execution of any such Act, law, Duty or Authority, the following provision shall have effect — (a) The action, prosecution, or proceedings shall not lie or be instituted unless it is commenced within three months next after the act, neglect or default complained”.
Justice Emmanuel observed that by paragraph 25 of the statement of claim and paragraph 8 of the Plaintiff’s counter affidavit to the defendant’s affidavit in support of his application, the Plaintiff made reference to the letter from the Chief of Staff to Mr. President dated November 24, 2020.
“The implication of the said letter is that there was a process or procedure in which the 10 revoked marginal fields were to be re-awarded on discretionary basis to qualified companies including the Plaintiff. For the Plaintiff to possess the necessary locus standi to institute this suit he must show among other things that he participated or showed interest in the subsequent process leading to the re-awarding of the 10 Marginal fields including OML 46 to qualified companies.
“The Plaintiff has not pleaded any fact in his statement of claim showing that he participated in the subsequent bid round to qualify for consideration of re-awarding OML 46 to it.
“The Plaintiff therefore lack the legal capacity to institute this suit as he no longer has sufficient interest in the subject matter to sustain same and I so hold.
“I will therefore resolve this ground against the Plaintiff”.
The court therefore reaffirmed Halkin exploration’s legal ownership and operational rights over the Atala Marginal Oilfield.
