Nigeria: Niger Delta Stakeholders Write Nuprc, Demand Oil Blocks Allocations' Reversal

25 December 2024

·Threaten litigation after seven day ultimatum

Some Niger Delta indigene have urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to reverse the 2024 licencing and 2022/23 Mini Bid Round for oil blocs in the oil' rich region.

They alleged that the process adopted in the exercise held recently was discriminatory and unlawful.

They also claimed that the process was in clear violation of the Petroleum Industry Act, which is the Commission's own operational guideline.

Counsel to the aggrieved Niger Deltans, Blessing Agbomhere, made the allegations in a letter addressed to the Chief Executive Officer of the NUPRC, Engr. Gbenga Komolafe.

The aggrieved persons, according to the letter, vowed to engage in a legal battle with the agency if the process was not reversed within seven days.

The law firm in the letter said it's clients would begin legal proceedings against the NUPRC if at the end of the seven days notice the commission fails to carry out a fresh bidding process for the oil blocs in conformity with the fundamental principles of fairness, equity, and inclusivity.

The legal firm listed its clients to include: Undiandeye Akonfe, James Okeati, Chief Victor Akposeseye Okiri, Fortune Nakoro, Arc. Kenneth Anyanwu, Okwara Idika, Akpan Edem, Otetubi Tolulope and Olali Solomon.

The firm claimed that its clients are critical and patriotic stakeholders who believe in the peace and prosperity of the Niger Delta region.

Part of the letter read, "You will also recall that, Niger Delta stakeholders are key contributors to Nigeria's oil and gas sector.

"They have been unjustly excluded from the licensing process despite their substantial investments, environmental sacrifices and statutory rights under the Petroleum Industry Act.

"Additionally, the two year delay in the licensing round has raised significant concerns about transparency, regulatory compliance, and the economic viability of the process.

"Excluding the Niger Delta Companies from benefiting from the resources in their region could lead to renewed agitation and conflict in the region."

It added: "A licencing process that excludes critical stakeholders from resource governance undermines the peace building efforts achieved through years of negotiation with Host communities."

The stakeholders, through the firm, further claimed that the oil blocs were allocated to companies whose majority shareholders are all from outside the Niger Delta region.

They added that the head offices of the beneficiary firms are not located within the region as against the expression of interest by persons who hail from the Niger Delta region.

They insisted that such action was a violation of sections 15(1), 42(1), and 318(1) of the 1999 constitution (as amended), the Petroleum Industry Act and the Nigerian Content Development Act.

They, therefore demanded an order of the Court directing the Minister of Petroleum Resources to withhold his consent to the allocation until another round of bidding wa conducted.

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