The Federal High Court in Lagos has nullified the revocation of the Dawes Island Marginal Field licence held by Eurafric Energy Limited, ruling that the action by the Ministry of Petroleum Resources and the Minister of Petroleum Resources was unlawful, procedurally flawed and unjustified.
Delivering judgement on Thursday, 29 January 2026, in suit no. FHC/L/CS/628/2021, Justice A. O. Awogboro granted the reliefs sought by Eurafric Energy Limited against the ministry, the minister, and Petralon 54 Limited.
The court set aside the 6 April 2020 revocation notice, the subsequent award of the field to Petralon 54 Limited, and the farm-out agreement between the Nigerian National Petroleum Company Limited and Petralon 54 Limited.
Awogboro described the revocation notice as invalid, null, and void, citing multiple breaches of statutory procedures under the Petroleum Act (Cap. P10, Laws of the Federation of Nigeria 2004) and the Guidelines for Farm-out and Operation of Marginal Fields (August 2001).
On procedural lapses, the court held, “It is hereby declared that the 1st and 2nd defendants did not follow the procedure prescribed in the First Schedule of the Petroleum Act Cap. P10 Laws of the Federation of Nigeria 2004, considering the rights conferred on the plaintiff by paragraph 20.0 of the Guidelines for Farm Out and Operation of Marginal Fields of 2001 before issuing the ‘Notice Of Revocation of Dawes Island Marginal Field Ref No PI. LM/1900/R/Vol. 179 of 6 April 2020’ signed by the Director of Petroleum Resources.”
The court further declared a breach of Eurafric’s statutory right to a fair hearing, saying, “It is hereby declared that the 1st and 2nd Defendants breached the Plaintiff’s statutory right to be heard under Paragraph 26 of the First Schedule of the Petroleum Act Cap. P.10 Laws of the Federation of Nigeria, 2004, by not informing the Plaintiff of the grounds upon which the revocation of Dawes Island Marginal Field was being contemplated and then giving the Plaintiff an opportunity to explain or respond before the purported Notice of Revocation was issued.”
On the substantive validity of the revocation, the judge declared that the 1st and 2nd defendants did not lawfully revoke the plaintiff’s right and interest in the ‘Dawes Island Marginal Field’ because the ‘Dawes Island Marginal Field’ is not a revocable instrument, considering the meaning and definition of a ‘marginal field’ in the First Schedule of the Petroleum Act and the Guidelines for Farm Out and Operation of Marginal Fields of 2001.
The judge also ruled that the reason given by the 1st and 2nd defendants in the Notice of Revocation, that is, the plaintiff failed to develop the field and bring it to production by the 30th of April 2019, is not a valid reason to revoke the marginal field.
The court emphasised that the defendants were stopped from revoking the licence after approving evacuation of crude oil from the field in January 2020.
Consequently, the judge ordered the defendants to renew the Dawes Island Marginal Field licence to Eurafric Energy Limited upon payment of requisite statutory fees and granted perpetual injunctions restraining the defendants, their agents, parastatals, or servants from transferring, reallocating, disposing of, or alienating the field or the plaintiff’s rights in the farm-out agreement.
A certified true copy of the judgement showed that Eurafric Energy Limited’s Managing Director, Mr Onoriode Odjegba, testified as the sole witness for the plaintiff, presenting evidence that the company successfully produced 62,039 barrels of net crude oil from the field between 2016 and 2018, following the drilling of the Dawes Island-1 well.
Over 50 exhibits were tendered, including the original award letter dated 25 February 2003; the farm-out agreement of 27 April 2004 (approved by the minister); subsequent extensions; production permits; and the revocation notice.
Officials of Petralon promised to revert when contacted for their reactions. They have yet to do so as of the time of this report.
