The Bayelsa State government said on Saturday it would seek the reversal of the revocation of its Oil Mining Leases (OML) 46 fields by the Department of Petroleum Resources (DPR).
The Acting Chief Press Secretary to the state governor, Mr. Daniel Alabra, disclosed this to journalists in Yenagoa, the state capital.
The statement said the state government was already studying the revocation order with the intention of seeking a review of the decision.
The OML 46 asset held by Bayelsa government and located within onshore swamps in the state was won in 2013 through a bidding process conducted by the DPR.
Meanwhile, the DPR on April 6 announced the revocation of 11 of the 13 marginal fields’ licenses it issued to indigenous oil firms to build capacity and promote Nigerians’ participation in the oil sector.
The Bayelsa government said it was concerned by the revocation and would take steps to reverse it.
The government said that the DPR’s decision was erroneous because the asset had been developed to the point of test production.
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The statement read: “The governor is already being briefed on the matter, he is taking a holistic view in order to arrive at an informed decision.
“The Bayelsa government holds 40 percent equity in the oil block along with other investors who operate the field, the state does not run the oil business on a day- to- day basis.
“We are hopeful that oil price will rebound, Bayelsa will retain its interests in Atala fields, this investment is well thought out and not misplaced.
“As a government, we are adopting an economic strategy that will shield the state from the shock of low oil prices.”
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