By Clara Nwachukwu

The Minister of Petroleum resources, Mrs Diezani Alison-Maduake, has explained that the recent revocation of leases on three oil blocks operated by the Nigerian unit of the America Oil giant, ExxonMobil, has to do with procedural issues as well as other cost and legal implications. The revocation were for Oil Mining Leases OMLs 67, 68 and 70, which leases, according to her, expired on March 4, 2011, a development that is being contested by ExxonMobil.

Making the explanations in Lagos last week, the minister said, “It came to our notice that there were certain issues with that renewal, which directly concern the actual price or cost or the revenues that were accrued to government from that renewal. That was not actually the underlining issue in the first place; it was a legal issue to do with the time of the renewal, the actual term of the renewal and whether in fact, at the time of renewal, the lease had expired or not. That was the issue at hand and that was the issue that was taken up with ExxonMobil.”

The minster told journalists that the renewal process, which was concluded sometime ago, was not properly executed, particularly with regard to the cost of the blocks and were therefore, not in compliance with the provisions of the Petroleum Act of 1969. Under the Act, the minister is also empowered to cancel leases that were not properly executed.

Denying that the revocation had anything to do with scores settling or political realignment as implied, the minister insisted that that the decision was based on national interest. “There is no settling of any scores with anybody. One thing that I can say is that we have a certain due process that is supposed to be followed to the letter.”

She, however, added that government and ExxonMobil are in talks with a view to reaching an amicable resolution over the impasse, noting that, “But any issue to deal with the legality of leases and their duration I this country must of course be handled with due intensity and the robustness that it deserves for the benefit of the country and in fact, for the benefit of the multinationals that is handling the leases as well and so we are looking at it very carefully and I have no doubt that between us and Mobil, we will come to an agreeable solution, but one that is legally correct and that is one we are looking for.”

ExxonMobil had seven days to raise objections on the revocation of the leases, which ended last Thursday, but the oil company chose the option of dialogue, as opposed to going to the courts.