Mobil lease license to be renewed

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The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, said Tuesday in Abuja, Nigeria that the Federal Government would renew Mobil Producing of Nigeria (MPN) lease licenses. She gave the assurance at the ongoing 2012 Nigeria Oil and Gas (NOG) Conference in Abuja. It will be recalled that in 2011, the minister revoked the mining licenses for oil blocs located in oil mining leases oil (OMLs) 67, 68 and 70 belonging to the MPN.
Alison-Madueke said the ministry had concluded plans to release the company’s revoked licenses, which were pending, because due process had to be followed. “The last exercise took a little while but it has been concluded in the best interest of the parties and l think they are satisfied with the agreement. Therefore, we are now ready to go ahead and sign the agreement after completing the necessary documentations tomorrow. Other oil renewal licenses will follow suit immediately after the completion of the first agreement because this is competitive in terms of renewal.’’
She also commented on the Petroleum Industry Bill (PIB), saying that it contained both fiscal regime and fiscal terms. “That was the reason why we have been pushing to get the PIB passed because that has been responsible for a draw back in investment in offshore. That was why we have been pushing to get the PIB off the ground because that has caused a draw-back in our deep offshore operations. The fact is we have to move on our own. The investments are on hold because the PIB is not in place. So, there is panic from investors who withdrew their money.
Alison-Madueke said the bill has to be represented to the National Assembly, adding that it has to pass through the President because so many versions are flying around. She said that a technical committee has been set up to finalise and push forward the PIB within the next five weeks. “We should have come to conclusions with the new version of the PIB and it will then be passed again through the President for onward forwarding to the national assembly.’’ The Petroleum Act empowers the Minister of Petroleum Resources to cancel leases that are not properly executed.
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