Nigerian President Says License to Operate OML 11 Oil Field Granted to NNPC Subsidiary

By Obafemi Oredein

Special to Dow Jones Newswires

IBADAN, Nigeria--Nigerian President Muhammadu Buhari said Friday the Nigerian Petroleum Development Company Ltd., a subsidiary of the Nigerian National Petroleum Corporation, has been granted a license to operate Oil Mining Lease 11.

OML 11 is in Ogoni land in the Niger Delta where nearly all of Nigeria's oil production takes place. The oil field contains 33 oil and gas fields.

Mr. Buhari, speaking in Abuja when a delegation of some Ogoni leaders and people paid him a courtesy call at State House, said oil exploration in OML 11 will stimulate economic activities and integration in the zone, according to a statement.

"To ensure the stimulation of economic activities in Ogoni land as underpinned by the vast petroleum resources underlying Ogoni land and neighboring communities, NPDC, a subsidiary of the NNPC has been granted license to operate OML 11.

"Accordingly, NNPC is hereby directed to engage all host communities, particularly Ogoni people, to ensure inclusive processes of oil and gas exploration and production is anchored on optimum involvement of host communities. NPDC will lay a broad-based program for the emergence of a new Ogoni land for the benefit of the Ogoni people and Nigeria as a whole," he added.

The federal government was committed to the cleaning up of Ogoni land, the president said.

OML 11 is seen as potentially the most prolific oil and gas asset in Nigeria with an estimated daily production of 250,000 barrels per day with all 33 wells producing.

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(END) Dow Jones Newswires

10-22-21 1553ET