Rather, Justice Taiwo Taiwo ruled that the renewal would be for 20 years and not 30, as requested by the company.
The suit by Shell was instituted against the Minister of Petroleum Resources and the Minister of State.
The Federal government had informed the court that its refusal to
renew the operating license of Shell Petroleum Development Company
(SPDC) was in the interest of the nation’s security.Shell had commenced legal action against the Federal government before the court seeking an order of the Court, compelling government to grant or renew its Oil Mining Lease (OML)11.
But counsel for the FG, Mohammed Diri, had in his
notice of preliminary objection, said that the primary objective of any
responsible government is to guaranty the safety of lives and
properties, adding that the refusal to renew OML 11 was a pre-emptive
measures to prevent the occurrence or escalation of security breach in
Ogoni area.
SDPC in its suit is seeking to compel the Minister of
Petroleum Resources to renew OML 11, in addition to 14 other Oil
mining leases approved for it in June 30, 2019.
The Federal government said that OML 11 covered an area
of 3,095.25 square kilometers that stretched between Rivers and Imo
states with 14 oilfields , 10 out of which is located in Ogoni area of
Rivers State .
It said that besides the security challenges, SPDC is
trying to compel the government to commit an illegality because an
approval by the Minister of State for Petroleum of a single oil block
size of 3, 095.25 is tantamount to facilitating illegality in
contravention of the (Drilling and Production ) Regulation which limits
the size of OML block to 1.295 square kilometers.(500 miles).
The Federal government therefore urged the judge to hold
that SPDC suit is destitute of merit and suffered incurable legal
deficiency and should be dismissed.
However, hearing on the suit was adjourned to Friday to
enable the government respond to issues of facts raised by the plaintiff
in its further and better affidavit.
Diri had told the court that he had not seen the
further affidavit and reply which SPDC counsel, Funke Adekoya (SAN) told
the court was served on the respondents.
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