The Federal Government, through the Ministry of Petroleum Resources and its minister, has urged the Lagos division of the Appeal Court to overturn a Federal High Court judgment that restored the Dawes Island Marginal Field licence to Eurafric Energy Limited, arguing that the company failed to bring the field into production despite holding the asset for 17 years.

The minister is seeking the reversal order in their Brief of Arguments filed before the Court of Appeal, Lagos, through their lawyer, Adebayo Ologe, leading Opeyemi Alaje, in the appeal marked CA/LAG/CV/362/2026.

The two Appellants are challenging the January 29, 2026, judgment of the Federal High Court, Lagos, delivered by Justice Abimbola Awogboro, who granted all 17 declaratory and injunctive reliefs sought by Eurafric Energy Limited, the Respondent in the appeal.

According to the Appellants, the Dawes Island Marginal Field was awarded to Eurafric in February 2003 under the Federal Government’s marginal field programme, with an expectation that the company would develop the asset and commence production within five years.

In the appeal, the Appellants argued that despite receiving extensions in 2011 and 2016, Eurafric failed to achieve commercial production. They maintained that a 2015 performance evaluation classified the company among operators that had shown “little or no commitment” toward developing their oil assets.

The Appellants further contend that the final extension granted in 2016 expressly warned Eurafric that it represented the company’s last opportunity to bring the field into production, failing which the licence would be withdrawn.

Although Eurafric conducted an Extended Well Test between 2016 and 2018 and extracted 62, 039 barrels of crude oil, the government argued that such testing could not be equated with commercial production. It relied on regulatory guidelines and evidence presented at trial to assert that several additional approvals and technical requirements were necessary before a field could be regarded as producing.

The Appellants also challenged the trial court’s finding that the revocation of the licence in April 2020 was unlawful. The government argued that the trial court wrongly applied provisions of the Petroleum Industry Act 2021 to events that occurred before the law came into force and failed to recognise the minister’s statutory discretion under the Petroleum Act 2004.

They urged the Court of Appeal to set aside the trial court’s judgment in its entirety, insisting that the revocation and subsequent re-award of the field to Petralon 54 Limited were lawful and in line with public policy objectives aimed at boosting oil production and government revenue.