Determining the limits of the ministerial discretion to renew petroleum leases in Nigeria – Shell v Minister of Petroleum

Abstract

It has been a moot point whether the Nigerian Minister of Petroleum has unfettered discretion to renew, withhold or delay renewal of petroleum oil mining leases (OMLs). This paper analyses the recent decision of Nigeria’s Federal High Court in Shell v Minister of Petroleum in this regard. It argues that the renewal of OMLs is a matter of course once the OML holder has performed its obligations under the petroleum lease and the Petroleum Act. It further contends that the Petroleum Act having preserved the duration of pre-1969 OMLs, their renewals ought to be for the same duration.