The Nigerian Upstream Petroleum Regulatory Commission has approached the Court of Appeal to challenge a recent Federal High Court judgment concerning the Dawes Island marginal field, in a move reflecting the Federal Government’s effort to safeguard investments and ensure stability in the oil and gas sector.
The commission’s application for leave to appeal was filed following a directive from the Office of the Attorney General of the Federation, which coordinated the government’s swift response to the court ruling.
This was contained in a statement issued by the African Energy Chamber and obtained by our correspondent on Thursday in Abuja.
At the centre of the dispute is Petralon 54 Limited, an indigenous firm that secured the Dawes Island field in the 2021 marginal field bid round and has since invested about $60 million in revitalising the asset.
The company is reported to have drilled two wells—DI-2 to a depth of 9,740 feet and DI-3 to 10,193 feet—evacuating over 200,000 barrels of crude oil to the Bonny Terminal and remitting more than $900,000 in royalties to the Federal Government as of March 2026.
Reacting to the filing of the appeal, the African Energy Chamber praised the Federal Government’s intervention, describing it as timely and essential for sustaining investor confidence. Its Executive Chairman, NJ Ayuk, said the move reflected a clear understanding of the stakes involved in the dispute.
“The Nigerian government’s swift action demonstrates a clear understanding of what is at stake. Protecting investors who deploy capital, create value, and contribute to national production is essential to maintaining confidence in the sector.
“This intervention reinforces Nigeria’s position as a serious and responsive energy investment destination, where regulatory integrity is upheld, and performance is recognised,” he said.
Ayuk further stated that the development sends a strong signal to both local and international investors that Nigeria remains committed to maintaining a stable and predictable operating environment.
“This kind of coordinated response assures stakeholders that Nigeria will continue to protect capital investments and reward operators who are actively developing assets in line with national objectives,” he stated.
The chamber said the appeal is consistent with the government’s wider policy direction, especially the “drill or drop” framework, which requires operators to either actively develop oil blocks or forfeit them.
According to the African Energy Chamber, maintaining continuity for performing operators such as Petralon is essential for sustaining production growth and deepening indigenous participation in the upstream oil sector.
The development comes amid renewed investor interest in Nigeria’s oil and gas industry under President Bola Tinubu’s administration, which has attracted over $8 billion in upstream investment commitments since 2023.
Key projects driving this momentum include Shell’s $2 billion final investment decision on an offshore gas project, TotalEnergies’ Ubeta development, and Shell’s Bonga North deepwater project, all of which highlight the scale of capital inflows into the sector.
