Bayelsa Kingdom files application to stop renewal of OML 29 | Nairalaw

The oil-rich Nembe-Bassambiri Kingdom, Bayelsa State, has filed
an application at the Federal High Court sitting in Yenagoa to stop
Aiteo Exploration and Production Limited from renewing Oil Mining
Lease (OML) 29.

The kingdom represented by six chiefs and prominent indigenes
has been on a legal battle with Aiteo since 2015 when the company
acquired the oil well from the Shell Petroleum Development Company
(SPDC).

But while the substantive suit is yet to be determined by the
court, Aiteo was reported to have commenced the process of renewing
the soon-to-expire license including paying $82m to the Department
of Petroleum Resources (DPR) as the final installment for the
renewal.

Aggrieved by the development, the Opu Nembe kingdom through
their legal firm, Ntephe, Smith & Wills asked the Federal High
Court presided over by Justice Awogboro Abimbola to stop the
transaction pending the determination of the substantive suit.

Specifically, the application is asking the court to make an
“order setting aside all applications, payments, steps or processes
made and taken between January 22, 2018 and January 22, 2019 or any
other date during the pendency of this suit by the fifth defendant
to the second defendant” through the DPR for the renewal of OML
29.

The defendants or respondents in the suit are listed as
Attorney-General of the Federation (AGF), Minister of Petroleum
Resources, Federal Ministry of Environment, SPDC, Aiteo,
Attorney-General of Bayelsa State and the Deeds Registrar, Bayelsa
State Ministry of Lands.

When the matter resumed for hearing on Friday, the plaintiff’s
Lawyer, Iniruo Wills, drew the court’s attention to the application
and the lack of willingness by Aiteo to hold settlement meetings
with the kingdom.

He said contrary to the earlier decision by the court that the
parties should meet, settle and return to the court with the terms,
the respondents frustrated the process.

Wills said: “There is no progress on the settlement. We have
received no feedback from the defendant. We only have disturbing
and dangerous signal.

“While the settlement is not progressing, the second and fifth
defendants proceeded to renew the lease, the subject matter of this
suit.

“$82m has been paid already for the renewal of the lease. But we
have filed a motion to set aside any step taken towards renewing
the lease”.

But the lawyer to the defendants, Soky Soberekom, said she had
not been served with the motion, which she described as unnecessary
insisting that the process of settlement was ongoing.

Disturbing by the ongoing process to renew the license, Wills on
behalf of his clients wrote to the Minister of State for Petroleum
warning of the consequences of going ahead to renew the lease
without dispensing with the matter in court between the company and
host communities.

The letter, which was co-signed by Dickson Omukoro said in
parts: “This move by Aiteo and your ministry is an affront on the
jurisdiction of the court and in violation of the spirit of the
proposed settlement particularly when at the last sitting of the
court, the presiding judge had to adjourned the matter on the
application of the lawyer to Aiteo to enable parties fully settle
MTN option.

“Without prejudice to the ongoing settlement, it is our view
that renewing the lease while the suit is pending amounts to total
disregard for the peaceful means the kingdom has opted to use in
resolving this dispute.

“We consider this approach counterproductive as it could cause
communities to vent their grievances using the same strategy of
disrespect for lawful means of resolution.

“As a host community, the kingdom should not be disdained by
Aiteo and the government for refraining from shutting down
operations and preferring to have its protracted grievances
resolved peacefully.

“All parties will benefit far more from handling the OML 29 and
its host kingdoms in a way that avoids the same conflict-prone path
as, for example, OML 11 in Ogoniland that led to the suspension of
operation for 25 years”.

He appealed to the minister to reverse steps already taken to
renew the lease until all legacy and pending issues relating to the
grant, divestment, operation and renewal of the lease had been
resolved to avoid escalation of the crisis.

The letter was copied to President Muhammadu Buhari, the AGF,
Governor Seriake Dickson, DPR and the Attorney-General of Bayelsa
State.