Godwin Tsa, Abuja

The Federal High Court in Abuja on Friday  refused the request by Shell Petroleum Development Company  directing the Minister of Petroleum Resources to renew the Oil Mineral Lease of OML11 for a period of 30 years.

Rather, Justice Taiwo Taiwo ruled that the renewal would be for 20 years and not 30, as requested by the company.
The suit by Shell was instituted against the Minister of Petroleum Resources and the Minister of State.

The Federal government  had informed the court that  its  refusal to renew the operating license of Shell Petroleum Development Company  (SPDC) was in the interest of the nation’s security.

Shell had commenced legal action against the Federal government before the court seeking an order of the Court, compelling government to grant or renew its Oil Mining Lease (OML)11.

But counsel for the FG, Mohammed Diri,  had in his notice of preliminary objection, said that the primary objective of any responsible government is to guaranty the safety of lives and properties, adding that the refusal to renew OML 11 was a pre-emptive measures to prevent the occurrence or escalation of security breach in Ogoni  area.
SDPC in its suit is seeking to compel the Minister of Petroleum Resources  to renew OML 11,  in addition to 14 other Oil mining leases approved for it  in June 30, 2019.
The Federal government said that OML 11 covered an area of 3,095.25 square kilometers that stretched between Rivers and Imo states with 14 oilfields , 10 out of which is located in Ogoni area of Rivers State .
 It said that besides the security challenges, SPDC is trying to compel the government to commit  an illegality because an approval by the Minister of State for Petroleum of a single oil block size of 3, 095.25 is tantamount to facilitating illegality in contravention of the (Drilling and Production ) Regulation which limits  the size of OML block to 1.295 square kilometers.(500 miles).
The Federal government therefore urged the judge to hold that SPDC suit is destitute of merit and suffered incurable legal deficiency and should be dismissed.
However, hearing on the suit was adjourned to Friday to enable the government respond to issues of facts raised by the plaintiff in its further and better affidavit.
 Diri had told the court that he had not seen the further affidavit and reply which SPDC counsel, Funke Adekoya (SAN) told the court was served on the respondents.