The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has formally approached the appellate court to challenge the recent Federal High Court ruling on the Dawes Island marginal field, in a move aimed at protecting investments and preserving stability in Nigeria’s oil and gas sector.
The commission’s decision to file an application for leave to appeal followed a directive from the Office of the Attorney General of the Federation, which coordinated the Federal Government’s response to the judgment.
This was disclosed in a statement issued by the African Energy Chamber and obtained on Thursday in Abuja.
According to the chamber, the regulator’s action reflects a unified effort by authorities to uphold regulatory consistency and prevent disruptions to operators already delivering production.
At the centre of the dispute is Petralon 54 Limited, an indigenous oil firm that took over the Dawes Island field in 2021 during the marginal field bid round and has reportedly invested about $60 million in reviving the asset.
The company drilled two wells—DI-2 to a depth of 9,740 feet and DI-3 to 10,193 feet—and evacuated over 200,000 barrels of crude oil to the Bonny Terminal. It also remitted more than $900,000 in royalties to the Federal Government as of March 2026.
Reacting to the appeal, Executive Chairman of the African Energy Chamber, NJ Ayuk, commended the Federal Government’s intervention, describing it as timely and necessary to sustain investor confidence in the sector.
“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,” Ayuk said.
He added that the intervention reinforces Nigeria’s image as a serious and responsive investment destination where regulatory integrity is maintained and performing operators are protected.
According to Ayuk, the development sends a strong message to both local and international investors that Nigeria remains committed to providing a stable and predictable operating environment.
The chamber noted that the appeal aligns with the government’s broader “drill or drop” policy framework, which encourages operators to actively develop oil blocks or risk losing them.
It stressed that ensuring continuity for performing operators like Petralon is vital for sustaining output growth and strengthening indigenous participation in the upstream sector.
The development comes amid renewed investor interest in Nigeria’s oil and gas industry under President Bola Tinubu’s administration, with over $8 billion in upstream investment commitments reportedly recorded since 2023.
Major projects such as Shell’s $2 billion final investment decision on an offshore gas project, TotalEnergies’ Ubeta development, and Shell’s Bonga North deepwater project have highlighted the scale of capital inflows into the sector.
Additional investments, including Chevron’s $1.4 billion commitment to deep and shallow water drilling, further reflect growing confidence in Nigeria’s regulatory environment.
Indigenous companies, which now account for about 30 per cent of Nigeria’s oil and gas production, are increasingly playing a major role in the country’s output growth, making regulatory clarity and investment protection even more critical.
The African Energy Chamber, however, urged all parties involved to pursue a swift and constructive resolution to the dispute to avoid disruptions to ongoing operations.
“The priority should be to ensure that production continues uninterrupted while the legal process runs its course. This is essential for maintaining Nigeria’s trajectory toward increased output, energy security, and economic resilience,” Ayuk added.
The Dawes Island field is one of several marginal fields awarded to indigenous operators as part of Nigeria’s strategy to deepen local participation in the upstream sector.
The Federal Government’s swift backing of the regulator’s appeal is expected to set a precedent for how similar disputes are handled, particularly in balancing investor protection with adherence to due legal process.
