Department of Petroleum Resources revokes the licences of six oil companies over huge debts

NIGERIA'S Department of Petroleum Resources (DPR) has revoked the oil mining licences (OML) of six energy firms after receiving a presidential directive to recover legacy debts which they owe the government.

Yesterday, the DPR announced that the licences of Pan Ocean Oil Corporation (OML 98), Allied Energy Resources Nigeria (OML 120 and 121), Express Petroleum and Gas Company (OML 108), Cavendish Petroleum Nigeria (OML 110) and Summit Oil International (OPL 206) have been revoked.  Summit Oil is owned by the late Chief MKO Abiola, while Pan Ocean had planned to commence the production of oil and gas from OML-147 at Owa Aladima.

Pan Ocean's three projects which will be ready for unveiling at the technical start up taking place on June 10 is expected to contribute significantly to industrialisation and economic growth and empowerment of the host and impacted communities in the Niger Delta. However, like many other oil firms. it owes the government money and the currently administration has decided to clamp down on petroleum companies not remitting monies.

In February, former minister of state for petroleum resources, Dr Ibe Kachikwu, announced plans to recover the oil licenses of the companies indebted to the government. He expressed worry that some of the companies had failed to make statutory remittances in spite of being in joint operatorship with the federal government, a development he said was denying the government revenue running into billions of dollars.