Kachikwu denies alleged interest in transfer of OML 11 to Chevron Nigeria

OLUSOLA BELLO AND KELECHI EWUZIE
Minister of state for petroleum resources, Emmanuel Ibe Kachikwu, has denied any interest in the transfer of Oil Mining Lease (OML 11) to Chevron Nigeria.
Oil Mining Lease (OML 11) contains 33 oil and gas fields, and is one of the most important blocs in Nigeria in terms of production.
Kachikwu, while reacting to a letter written to President Muhammadu Buhari by a group known as Ken Saro Wiwa Associates (KSWA) alleging entrenched interest in the oil transaction, denied any involvement.
The group, in a petition to President Muhammadu Buhari alleged a plot by a minister “to unilaterally transfer CNL’s interest in the Yorla Oil Field (OML 11–Ogoni Fields) to an anonymous company in which he has interest.
KSWA said it was an “organisation with global membership committed to promoting the ideals and the consolidation of the legacies of the Ogoni Hero and human rights activist, Ken Saro Wiwa and his fellow martyrs in the struggle.”
In a statement signed by Idang Alibi, director, press and public relation, Ministry of Petroleum Resources and made available to the press, Kachikwu categorically said Chevron Nigeria Limited had controverted the allegation in its entirety in the April 20, 2018 edition of The Guardian Newspaper and reiterated that “it does not have any equity in OML 11.”
According to the statement, “The honourable minister of state has not held any conversation with Chevron Nigeria Limited to discuss OML 11 nor made any recommendation to Chevron in respect of OML 11, nor indicated an interest in any company that might be collaborating with Chevron or any party to develop OML 11.
Kachikwu further said he was resolutely committed and focused on delivering on the key aspirations of the #7BigWins of which Business Environment, Investment Drive, Niger Delta and Security remain key themes.
Meanwhile, the report indicates that Chevron Nigeria Limited, operator of the Joint Venture with the Nigeria National Petroleum Corporation (NNPC), has denied alleged transfer of its interest in Oil Mining Lease 11 (OML) in Yorla Field, eastern Niger Delta to an investor.
Esimaje Brikinn, general manager, policy, government and public affairs of the company, said in a recent statement, “Chevron does not have any equity in OML 11 as alleged in a recent report.”
Brikinn said CNL has 40 percent equity in OML 51 in Rivers State in which the Yorla South Field was located.
He said Chevron was not soliciting for expressions of interest (EoIs) for any of its assets, adding: “While CNL regularly reviews its asset portfolio to seek opportunities for optimising its businesses, any decision on acquisitions or divestitures will be made after following its established processes.
“As with past exercises, CNL will follow consistent and transparent process if and when it determines that asset transactions will be beneficial to its operations. These decisions are made without regard to outside pressures or influences,” he said.
The KSWA in their petition further sought the reversal of all decisions, approvals and recommendations made by the minister regarding the Yorla Oilfield.
“We urge the Federal Government to take the above measures as the Ogoni people have lost confidence in the minister’s ability to dispense justice in the protracted matter between us and the SPDC JV partners over OML 11 Ogoni Fields,” the group stated.
A recent report shows that Shell will have a new OML 11, which is one of the three tracts carved out from the old OML 11, but it can apply for only one of the remaining two, according to ranking sources at the Ministry of Petroleum Resources in Abuja.
The old OML 11 was actually under a Shell divestment programme when the AngloDutch giant applied for its renewal; Shell is talking with Transcorp, a Nigerian company which is scouting for $1Billion to pay for 45% of OMLs 11 &17. It is not clear how that transaction will work under the government’s “split it to three acreages” instruction.
Other interests, including a company named Robo Michael, claiming to be championing a community cause, have laid claim to those parts of the old OML 11 which lie in Ogoniland, a piece of territory where Shell had been refused access by the communities for upwards of 23 years. Bodo, Bodo West and Yorla fields, all in Ogoniland, are in the south of the old OML 11. It’s not clear where they would be, when the government concludes the split.
But a renewal of OML 11 licence, either in wholesale or in pieces, improves the investment climate around the asset.