Michael Ajayi
Brent crude futures were up 13 cents to $60.76 a barrel on Thursday, while U.S. West Texas Intermediate crude futures gained 2 cents to $51.70 a barrel.
This is even as Department of Petroleum Resources (DPR) has revoked five Oil Mining Licences and one Oil Prospecting Licence belonging to five companies.
After falling to near five-month lows in the previous session, oil futures were largely steady on Thursday, as sentiment remained weak on fresh signs of a stalling global economy and ongoing concerns about growth in supply.
However, in a public notice issued on Thursday by DPR, the revocation was based on a presidential directive to “recover legacy debts” owed by the companies operating the licences.
The five companies affected are 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)
Summit Oil is owned by the family of late Chief M.K.O. Abiola.
The News Agency of Nigeria reports that Pan Ocean hopes to commence the production of oil and gas from OML-147 at Owa Aladima.
The former Minister of State for Petroleum Resources, Mr Ibe Kachikwu, had last February announced plans to recover the oil licenses of the companies indebted to it.
He expressed worry that some of the companies have failed to make statutory remittances in spite of being in Joint Operatorship with the Federal Government, a development he said was denying it revenue running into billions of dollars.
