The Federal High Court in Yenagoa, Bayelsa, has reaffirmed Halkin Exploration and Production Limited as the rightful owner and operator of the Atala Marginal Oil Field (OML 46), putting an end to a protracted legal battle over its ownership.
Delivering the judgment, Honourable Justice Ayo Emmanuel dismissed the lawsuit filed by Bayelsa Oil Company Limited (BOCL), ruling that the case was statute-barred and that the plaintiffs lacked the legal standing to challenge the re-award of OML 46 to Halkin Exploration.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which had filed an objection against the suit, welcomed the ruling, describing it as a landmark victory for the upstream oil and gas sector. Through its counsel, Mr. Chikaosolu Ojukwu (SAN), the commission stated:
“This judgment affirms the credibility of the bidding and awarding processes of marginal fields and deep offshore assets, reinforcing the integrity of the regulatory framework.”
Ojukwu further emphasized that under the leadership of Gbenga Komolafe, the NUPRC has remained committed to upholding the rule of law, ensuring compliance within the upstream sector, and fostering sustainable development through improved crude oil production.
The dispute originated from the initial award of OML 46 to Bayelsa Oil Company Limited by the Department of Petroleum Resources (DPR) on February 25, 2003. However, the federal government revoked the lease on April 6, 2020, citing the company’s failure to develop and produce from the field. Following years of inaction from Bayelsa Oil Company in contesting the revocation, the oilfield was re-awarded to Halkin Exploration on July 7, 2021.
Seeking to overturn this decision, Bayelsa Oil Company filed a lawsuit on June 20, 2024, at the Federal High Court, Yenagoa, arguing that the re-award was unlawful. However, Halkin Exploration, through its counsel Mr. Kehinde Ogunwumiju (SAN), filed a preliminary objection on July 18, 2024, challenging the court’s jurisdiction.
Citing Section 2 of the Public Officers Protection Act and Section 307 of the Petroleum Industry Act 2021, the court ruled on February 24 that the plaintiffs’ claims were time-barred and dismissed the case in its entirety. Justice Emmanuel highlighted that for Bayelsa Oil Company to have legal standing, it needed to demonstrate participation or interest in the re-award process—something it failed to do.
“The plaintiff has not provided any evidence indicating its involvement in the subsequent bid rounds,” the judge stated. “Without such participation, it lacks the legal capacity to sustain this suit.”
Consequently, the court reaffirmed Halkin Exploration’s ownership and operational rights over the Atala Marginal Oilfield, reinforcing the legal finality of the re-award process.
