Follow Us on Google
By Vincent Kalu
As the struggle for the ownership of Atala Oil Field (OML46) shifted to the Senate Committee on Ethics, Privileges and Public Petition, one of the Respondents, Halkin Exploration and Production Limited, has sued the National Assembly at the Federal High Court, Abuja, a move perceived as a subterfuge to avoid appearing before the Committee to answer questions relating to its claim to have invested $60,000,000 in the Atala Marginal Field and the acquisition of 41 per cent of Bayelsa Oil Company Limited’s participating interest in the Atala Field. These unfounded claims informed the Department of Petroleum Resources’ (DPR) and the Hon. Minister of Petroleum Resource’s justification for the award of the field to Halkin.
Hardy Oil Nigeria Limited (HONL), one of the Joint Venture Partners with Bayelsa Oil Company Ltd, and Century Exploration and Production Limited, had by letter dated 24th, September, 2021, written the Senate Committee on Ethics, Privileges and Public Petition complained of alleged fraud, criminal breach of trust, forgery, corruption and the improper manner in which the Department of Petroleum Resources (DPR) revoked and rewarded the Atala Field (OML 46) to a company called Halkin Exploration and Production Limited.
HONL stated that the JV Partners of the Atala field have so far invested over US $89,000,000 in developing the Atala Field between 2004 and 2018 and that the field was producing and several royalties paid to the Federal Government of Nigeria prior to the improper revocation of the Field; that there was an effort by people with connections in high places to reap from the efforts of the Atala JV Partners.
The Senate Committee on Ethics, Privileges and Public Petitions chaired by Senator Ayo Akinyelure had by letters dated October 15, 2021 invited the parties comprising, Hardy Oil Nigeria Limited, Bayelsa Oil Company Limited, Century Exploration and Production Limited, DPR and Halkin Exploration and Production Limited to a Public Hearing of the Committee on October 21, 2021.
The proposed hearing scheduled for October 21, 2021, at Meeting Room 120, New Senate Building, by 2pm, was rescheduled to November 4, 2021 on the request of Halkin, which had by letter dated October 12, 2021, signed by its Managing Director, Mr. Ebikabowei Dorgu, who was until recently the MD of Bayelsa Oil Company Limited, asked for two weeks extension to enable Halkin put together their documentation to give a proper presentation.
The Committee chairman confirmed at the hearing that the Committee had earlier received a letter dated October 12, 2021, signed by the Managing Director of Halkin, Mr. Ebikabowei Dorgu, to the Committee, wherein Halkin confirmed the receipt of the invitation and the petition of HONL, and further stated that it looks forward to appearing in person before the committee and is mindful that key to a Public hearing is documentation. Halkin further stated in the letter that there is a significant amount of documents it will be putting together, but unfortunately the key personnel in custody of the documents travelled and sought for two weeks extension from October 21, 2021 to put together all documentations. That Committee on account of Halkin’s request extended the hearing to November 4, 2021.
All the parties invited for the hearing were present on the rescheduled day, except Halkin, which wrote a letter through its solicitors stating that it had on November 2, 2021 filed an action at the Federal High Court to challenge the sitting of the Committee.
The Committee frowned at the tactics adopted by Halkin, which was interpreted as an attempt to impede the performance of the oversight functions of the Legislature and resolved to continue with the hearing; cognizant of the fact that Hardy Oil’s petition was pending at the National Assembly prior to the action filed by Halkin on November 4, 2021 and that Halkin’s action is an attempt to use the judicial arm government to stultify the performance of the constitutional responsibilities of the Legislature, an equal and independent arm of government . The public seating was adjourned to first week of December 2021 for continuation.
The JV Partners stated that the Corporate Affairs Commission’s records of Halkin Exploration and Production Limited showed that the Company was only incorporated on September 29, 2019. Meanwhile, the field development and production of the Atala Marginal Field were achieved between 2004 and 2018 long before Halkin was incorporated.
Hardy Oil Nigeria Limited had called for a thorough investigation of Halkin’s Investment claims in the Atala Field and further challenged Halkin to show proof of the alleged Farm-in Agreement with BOCL and by extension the Atala JV Partners, and evidence of its alleged investment of $60,000,000 in the Atala Field through the production of its bank statement of accounts showing evidence of the alleged funds transfer from its bank account and the funds destination account, as well as, the Company’s audited accounts and tax records as a way of enabling the Senate Committee determine the truth or otherwise of Halkin’s claim. It also questioned Halkin’s track record of performance in the oil & gas sector, part of which DPR used to justify the award of the field to Halkin.
