Bayelsa, Nigeria--(Newsfile Corp. - February 28, 2025) - The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has welcomed a landmark ruling by the Federal High Court in Yenagoa, Bayelsa State, which reaffirms Nigeria's commitment to transparent regulatory enforcement and due process in oil asset allocations. The ruling, which dismissed all legal claims against the re-award of OML 46 (Atala Marginal Oil Field) to Halkin Exploration and Production Limited (Halkin E&P), underscores the rule of law as the foundation for investment security in Nigeria's energy sector.
Engr. Gbenga Komolafe FNSE (Commission Chief Executive)
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This verdict upholds Nigeria's commitment to transparent and merit-based asset allocations, and President Bola Ahmed Tinubu's administration's pledge to depoliticize regulatory decisions. By prioritizing merit-based licensing and regulatory discipline, the administration is reinforcing Nigeria's reputation as a stable, rules-based investment destination, free from undue political influence.
The Federal High Court ruling, delivered by Justice Ayo Emmanuel, confirmed that Bayelsa Oil Company Limited lacked the legal standing to challenge the Federal Government's re-award of OML 46 to Halkin E&P. The court dismissed the case in its entirety, ruling that it was statute-barred under Section 2 of the Public Officers Protection Act and Section 307 of the Petroleum Industry Act (PIA) 2021, which clearly define time limits for contesting oil asset allocations.
By upholding the integrity of Nigeria's regulatory and legal processes, this ruling sends a strong signal to the international investment community that Nigeria remains committed to protecting legitimate investors and ensuring fair and transparent asset governance.
Under the leadership of Chief Executive Engr. Gbenga Komolafe, the NUPRC has played a pivotal role in ensuring compliance and enforcing due process in asset management. The Commission's Seven Pillars of Divestment Strategy, which prioritizes lease enforcement, community engagement, and ESG compliance, has been instrumental in revoking non-performing leases and reallocating assets like OML 46 to technically and financially capable operators.
Chikaosolu Ojukwu, S.A.N., legal counsel for the NUPRC, described the ruling as a significant win for Nigeria's oil and gas industry, stating:
"This judgment reinforces Nigeria's legal and regulatory framework for upstream oil and gas operations. It demonstrates that the judiciary upholds due process and protects legitimate investors. Regulatory enforcement ensures that asset allocations remain transparent and fair, strengthening investor confidence in Nigeria's energy sector."
With this ruling, Nigeria has further solidified its reputation as a stable and investable energy jurisdiction, where asset allocations are governed by due process, regulatory compliance, and operational capability. This outcome reassures global investors that Nigeria is fostering an energy market driven by transparency, accountability, and performance.
With full legal clarity restored, Halkin E&P is now positioned to advance the development of OML 46, contributing to Nigeria's economic growth and energy security objectives. The company's strategic development plans align with NUPRC's broader industry vision, including:
- The construction of a 2,000-barrel modular refinery, supporting Nigeria's fuel security and local refining capacity.
- The launch of a gas processing plant, aimed at reducing gas flaring and advancing Nigeria's decarbonization efforts.
- Expansion into renewable energy, including solar and hybrid power projects in host communities, supporting Nigeria's clean energy transition goals.
These initiatives reflect Nigeria's commitment to energy diversification, sustainable resource development, and maximizing the potential of its upstream sector.
As Nigeria advances its upstream energy strategy, the NUPRC remains committed to regulatory excellence, investment protection, and fostering a globally competitive oil and gas sector.
Media Contact:
Tejiri Onoriode
09044067715
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