By John Ikani
The Nigerian National Petroleum Company Limited (NNPCL) has announced that it has taken over the role of operator for oil mining lease (OML) 18, replacing Eroton Exploration and Production Limited.
NNPCL spokesperson, Garba Deen Muhammad, made this disclosure in a statement released on Monday.
Eroton formerly operated OML 18 on behalf of the Eroton/NNPC joint venture located south of Port-Harcourt.
According to the statement by the state oil company, the non-operating joint venture (JV) partners of OML 18 appointed its subsidiary, NNPC Eighteen Operating Limited, as the new operator of OML 18.
The statement explained that the move was necessary to protect the joint venture (JV) investment in OML 18, as production had declined from 30,000 barrels per day (bpd) to zero.
NNPCL cited Eroton’s failure to meet the fiscal obligations of the federal government as the reason for its inability to remit proceeds of gas supplied to its affiliate, Notore.
Also, the Federal Inland Revenue Service (FIRS) sealed Eroton’s head office in Lagos for more than 12 months due to non-payment of outstanding taxes.
The statement further read that the change in operatorship has been notified to the Nigerian Upstream Regulatory Commission (NUPRC) and communicated to Eroton.
