By Peter Uzoho
Eurafric Energy Limited has debunked claims made by the Director of Petroleum Resources (DPR), Mr. Sarki Auwulu before the House of Representatives Committee on Public Petitions regarding the revocation of the Dawes Island marginal field and the decision to re-award the asset to Petralon 54.
While reacting to some of the claims by Auwulu who was also speaking on behalf of the Minister of State for Petroleum Resources, Mr. Timipreye Sylva, Eurafric disclosed that there is no pending court case on the matter.
The company also disclosed that it had produced over 62,000 barrels of crude at the time of the revocation.
It accused the petroleum minister and Auwulu of disregarding a clear directive from President Muhammadu Buhari, to reinstate the field to the JV.
The company carpeted the regulatory agency for failing to notify Eurafric of the said petition submitted by Petralon 54, adding that this established a clear case of bias exhibited by Sylva and Auwulu.
“It is also noteworthy that the then petroleum minister (Dr. Ibe Kachikwu) to whom the 2018 petition was submitted, disregarded it for being baseless and speculative,” the company added.
It noted that DPR claimed the expenses were on sole-risk basis, and still went ahead to justify the award of the field to Petralon based on its unsubstantiated claims, while disregarding that of Eurafric and Tako.
Eurafric pointed out that the claim that the field was inactive for 17 years was an attempt by DPR to deceive less discerning persons.
The company clarified that two Force Majeure events of about 10 years cumulatively severely affected field development activities from licence award till date.
The company noted that since the revocation of the licence, it has solely funded security cover for the crude oil in storage at the field.
Eurafric also disclosed that the Dawes Island Marginal Field was never part of the last Marginal field bid rounds as erroneously claimed by DPR.
On DPR’s allegation of non-performance, the company explained that the DPR Director, Auwalu concealed the fact that Eurafric in Joint Venture with Tako and Petralon produced 62,000 barrels of crude oil from the Dawes Island marginal field, after collectively expending considerable funds
Eurafric described the claim that it had no financial or material investment in the asset as unfounded and grossly misleading, noting that it has funded 75 per cent of all expenses on the field till date.
