Oil companies jolted by Falana’s letter to Buhari for reallocation of oil blocks

 

By Emeka Nze

International oil companies (IOCs) and their indigenous counterparts are jittery over Femi Falana’s letter to Buhari, advising the President to reallocate the oil blocks currently under the lease holders to federal and state governments in line with constitutional provisions.

Some of the oil companies, particularly those whose oil blocks are due for renewal, are particularly worried, having been caught in the current web of government’s planned revocation of a number of oil blocks and marginal fields which were formerly allocated to a few individuals and foreign oil companies by past military and civilian administrations in Nigeria.

A source in one of the oil companies confirmed to Media Issues that there was indeed, apprehension in his company due mainly to a few of their acreages that had expired, and for which they were yet to conclude renewal process with the Department of Petroleum Resources (DPR).

According to a source in DPR, a total of 19 Oil Mining Leases (OMLs) and 28 Oil Prospecting Licenses (OPLs) oil blocs are due to expire in 2019, heightening fears of the IOCs and indigenous producers who are current licensed holders.

Falana, a Senior Advocate of Nigeria (SAN), in his letter to President Buhari , advised the President not to renew oil licences of the oil companies as the current practice was a violation of Section 16(2) (c) of the country’s Constitution which states categorically that, “the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or of a group.”

Falana who threatened to challenge the government in court if it failed to give effect to his position in line with the country’s constitution, contended that the current practice not only breeds corruption, but gives undue economic advantage to IOCs and some individual Nigerians above other Nigerians over resources that is supposed to be a commonwealth, saying the constitution vests ownership of the oil blocks on the state.

“Having acquired the “entire property in and control or all minerals, mineral oils and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters” and vested same in the federal government on behalf of the people of Nigeria pursuant to section 44(3) of the Constitution it is inequitable, illegal and unconstitutional to allocate the nation’s oil blocks to a few individuals and corporate bodies including multinational corporations,” Falana said in the letter.