Wednesday, September 18, 2019
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REVOCATION OF LICENCE: PAN OCEAN DEFERS PLAN ON PROJECTS

One of Nigeria’s indigenous oil company operating in Niger Delta, Pan Ocean Oil Corporation defers an earlier plan to unveil its projects following revocation of its licence by the Federal Government.
The company had earlier planned to unveil the NNPC/Pan Ocean Ovade-Ogharefe Gas Processing Plant Phases I & II, the Oil Mining Lease (OML) 147 Early Production Facility (Flow Station) at Owa-Alidinma, Delta state and the Amukpe-Escravos Pipeline, a 67-kilometre crude oil export facility.
The unveiling of projects was cancelled on the instructions of the Department of Petroleum Resources (DPR), Nigeria’s petroleum regulatory agency. The problem is that two of these three assets are located in an acreage (OML 98) whose licence has been revoked by the government.
Since licence has been ‘withdrawn’ it will be illegal to unveil any project within the restricted areas.
Construction of the Amukpe-Escravos Pipeline was embarked upon by Pan Ocean, primarily to export crude oil from OML 98, but the company’s rights to crude production on that acreage had been revoked since April 2019. As of June 10, 2019, Pan Ocean had lost the right to those crudes. In the same vein, the company no longer has the permit of the Nigerian state to operate the Ovade-Ogharefe Gas Processing Plant Phases I & II.
The company made it known that it wanted to unveil these projects in order to keep its words of delivering these three projects which have the capacity to create hundreds of jobs, lift local communities and contribute immensely to power supply and the Nigerian economy.
It will be re-called that the government revoked the licence of the oil company on OML 98 due to its negligence in paying Royalty to government.
It was also gathered that even if Pan Ocean pays the belated royalty which will be considered as an after-thought, only the president reserves the right to reverse the revocation.

Energy Focus
Editor at Energy Focus Report.
https://www.energyfocusreport.com

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