The House of Representatives has urged the federal government through the Nigerian Petroleum Development Company (NPDC) to suspend the planned auction and sale of the oil mining licence (OML) 11 asset until relevant issues are resolved with the host communities.

The House also mandated its committee on petroleum upstream to urgently investigate the planned auction among other matters and report back within four weeks for further legislative action.

These resolutions followed the adoption of a motion of urgent national importance sponsored by Victor Mela from Gombe at the plenary, Wednesday.

The NPDC upstream subsidiary company of the Nigerian National Petroleum Corporation Limited (NNPCL) had in August resumed oil exploration activities at oil mining lease (OML) 11.

Moving the motion, Mela noted that the oil field under oil mining license 11 was formerly operated by the Shell petroleum development company (SPDC) joint venture and have laid idle since they were forced out of Ogoniland in 1993.

Mela also noted a court of appeal judgement of 16th August 2021, which the SPDC joint venture lost its right to renewal of the operating license.

The lawmaker expressed worry that “there are unresolved issues between the government and the host communities of Ogoni, which is currently fueling resistance and restiveness amongst the people.”

He expressed concerns over claim that “the government is involved in under the table of covered arrangements to auction OML 11 asset to Sahara energy limited for a paltry sum of $250 million as against the $1 billion offered by the SPDC.

Mela stated further that there is need to urgently clarify and resolve issues associated with the planned auction among other matters.

In the meantime, the House adjourned plenary to January 17, 2023 to enable lawmakers observe the Christmas and New Year festivities.