The Federal High Court in Lagos has nullified the revocation of the Dawes Island Marginal Field licence previously held by Eurafric Energy Limited, ruling that the Ministry of Petroleum Resources and the Minister of Petroleum Resources acted unlawfully.

Justice A. O. Awogboro delivered the judgment on January 29, 2026, in suit no. FHC/L/CS/628/2021. The court set aside the April 6, 2020, revocation notice, the subsequent award of the field to Petralon 54 Limited, and the farm-out agreement between NNPC and Petralon. The ruling declared the revocation notice invalid due to multiple breaches of the Petroleum Act and the Guidelines for Farm-out and Operation of Marginal Fields.

The court found that Eurafric was not given a fair hearing or informed of the reasons for the revocation before the notice was issued. It also ruled that the reason given for revocation—that the company had not developed the field by April 2019 was not legally sufficient.

Justice Awogboro ordered the Ministry and its agents to renew the licence to Eurafric Energy upon payment of statutory fees. The court also issued perpetual injunctions preventing any transfer, reallocation, or disposal of the field or Eurafric’s rights in the farm-out agreement.

Eurafric’s Managing Director, Onoriode Odjegba, presented evidence showing that the company successfully produced 62,039 barrels of net crude oil from the field between 2016 and 2018. Over 50 exhibits were submitted, including the original award letter, farm-out agreement, production permits, and the revocation notice.
Officials of Petralon 54 Limited were contacted for comment but had not responded by the time of reporting.