African Energy Chamber Backs FG Appeal in Dawes Island Marginal Field Dispute

ABUJA, Nigeria — The African Energy Chamber (AEC) has welcomed the Federal Government’s intervention in the Dawes Island marginal field dispute, calling it a strong signal for investor confidence in Nigeria’s upstream oil and gas sector.

Okay News reports that the AEC disclosed its position in a statement on Monday, April 27, 2026, after the government backed an appeal by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) against a court ruling that nullified the transfer of the asset to Petralon 54 Limited.

“The Nigerian government’s swift action demonstrates a clear understanding of what is at stake,” said NJ Ayuk, Executive Chairman of the AEC. “Protecting investors who deploy capital, create value and contribute to national production is essential to maintaining confidence in the sector.”

The dispute centres on the transition of the Dawes Island marginal field from Eurafric Energy Ltd. to Petralon 54 under the country’s marginal field programme. Petralon 54 has invested about $60 million (approximately ₦90 billion) in the asset, restored infrastructure, drilled wells and begun production. By March 2026, more than 200,000 barrels of crude had been evacuated to the Bonny Terminal and over $900,000 in royalties paid to the Federal Government.

A Federal High Court ruling recently nullified that transition, creating uncertainty that the AEC said threatens the “drill or drop” policy designed to reward operators who actively develop assets. The chamber noted that Nigeria has attracted more than $8 billion in upstream investment commitments since 2023, and that legal certainty is critical to sustaining that momentum.

The case is now before the Court of Appeal, with industry stakeholders saying the final ruling will test the credibility of Nigeria’s regulatory reforms and the protection of investments after production milestones are met.