Odua Investment Company Limited’s push to achieve first oil through its upstream subsidiary, Bita Exploration and Production Limited, has hit a major hurdle following the revocation of the operating licence of the Oritsemeyin Rig by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Oritsemeyin Rig, operated by Selective Marine Services Limited (SMSL), had been contracted to drive Odua’s drilling programme in Ondo State, with a target of achieving first oil by the third quarter of 2025. With the licence revoked, the rig must cease operation which could force Odua to urgently seek an alternative platform with no doubt huge cost implication.
The NUPRC, in a statement signed by its Chief Executive, Engr. Gbenga Komolafe, explained that the decision was taken after a thorough review of the drilling of UDIBE-2 wellbore, which encountered a “kick” leading to prolonged non-productive time, higher costs, and a forced well sidetrack.
According to the Commission, the incident highlighted lapses in safety and operational standards that contravened good oilfield practices.
“Consequent upon the foregoing and pursuant to the relevant powers conferred on the Commission under the Petroleum Industry Act 2021, the annual licence to operate granted to Selective Marine Services Limited for the Oritsemeyin Rig is hereby revoked,” NUPRC said, adding that the rig has also been disqualified from all renewal protocols.
This regulatory enforcement, the Commission stressed, is aimed at ensuring strict compliance with international industry standards, safeguarding operational safety, and preserving environmental sustainability.
For Odua Investment, however, the revocation poses significant risks to its ambitious timetable. Industry analysts note that the conglomerate may face delays, cost escalations, and renegotiations as it scouts for a replacement rig, potentially pushing back its much-anticipated first oil milestone.
Stakeholders in Ondo State and across the Southwest are watching closely, as Odua’s oil exploration success was projected to enhance the revenue base of its six owner states and mark a historic entry into Nigeria’s upstream oil and gas sector.
