Adewale Sanyaolu
The Director and Chief Executive Officer (CEO) of the Department of Petroleum Resources (DPR), Engr.Sarki Auwalu, has assured that the equity and economic interests of all stakeholders will be protected as Pan Ocean Oil Corporation (Nigeria) Limited hands over OML 98 to the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
The assurance was given at a meeting involving representatives of NNPC, DPR, NPDC and Pan Ocean, as part of the asset handover process.
DPR had in March 2019, revoked Pan Ocean’s OML 98 licence over issues bothering on royalty payments. Over the last 11 months, Pan Ocean has spared no effort at ensuring a smooth transfer of the asset.
Assuring stakeholders that the midstream assets in OML 98 and those associated with the Mining Lease will continue to deliver value to stakeholders, Auwalu said outstanding operational costs incurred by the NNPC/Pan Ocean JV will receive due attention after verification. He directed the NNPC/Pan Ocean JV to sort out members of staff associated with the asset while pointing out that legacy debt on the asset will be settled amicably by exploring available options without recourse to legal steps.
According to Auwalu, “the equity and economic interests of all investors are recognized. We will ensure that no one is short-changed. Everyone will recoup their investments on all the assets and no investor will be discouraged.”
“Pan Ocean must work together with the new owner of OML 98, especially on the midstream assets. OML 98 cannot be operated efficiently and profitably without the midstream assets,” he said, while promising that a letter will be delivered to Pan Ocean in the next few days to assure the company about the security of its assets and equity.’’
While reassuring the regulators of Pan Ocean’s commitment to a smooth transition, Mr. Olajide Ishola, Chief Operating Officer, Pan Ocean said, “Since last year when the revocation of the asset came into effect, a lot of things were left in limbo. This meeting set the tone for the handover and future of the asset. In the months ahead, we will continue to work closely with regulators to ensure that there is no significant disruption in production as a result of change in ownership.”