The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has filed an appeal in the appellate court against a recent Federal High Court ruling on the Dawes Island marginal field, following directives from the Attorney General’s Office in a bid to safeguard investments and ensure sector stability.
Sitting at the heart of the controversy is Petralon 54 Limited, an indigenous operator that acquired the field in 2021’s bid round. The firm has invested roughly $60 million, drilled wells DI-2 and DI-3, produced over 200,000 barrels of crude evacuated to Bonny Terminal, and paid more than $900,000 in royalties by March 2026.
AEC Executive Chairman NJ Ayuk praised the government’s prompt response, calling it vital for investor confidence and alignment with the “drill or drop” policy. He emphasized that it signals Nigeria’s commitment to a reliable environment, rewarding active developers and supporting indigenous firms, which now contribute 30% of national production.
This occurs amid booming upstream investments under President Tinubu—over $8 billion since 2023—including major projects from Shell, TotalEnergies, and Chevron. AEC urges quick resolution to prevent operational disruptions, prioritizing uninterrupted output for energy security and growth. The case highlights tensions in marginal fields, often reassigned to locals from IOCs, and could shape future dispute handling.
