Seventeen marginal oilfields in Nigeria are currently producing out of 30 fields awarded since its inception in 1999.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, made this known at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference on Thursday in Lagos.
Komolafe, represented by Mr. Abel Nsa, Head, National Oil and Gas Excellence Centre (NOGEC), said marginal fields award was initiated to increase participation of indigenous companies in the upstream sector and build local content capacity.
He said it was also targeted at creating employment opportunities and encouraging increased capital inflow to the sector and create employment opportunities.
Komolafe said: “Since its inception, a total of 30 fields have been awarded, 17 currently producing.
“A breakdown of the allocation of the fields to indigenous operators is as follows: two fields awarded in 1999, 24 in 2003/2004, one each in 2006 and 2007, and two in 2010.
“10 years after, in 2020, 57 fields were put up for bidding.”
It will be recalled that one of the major tasks inherited by the NUPRC, upon its inauguration last year, was the need to conclude the 2020 Marginal Field Bid Round exercise.
“Consequently, we pursued the matter frontally and are delighted to inform you that the exercise, which commenced in June 2020, has been concluded with
the issuance of Petroleum Prospecting License (PPL)to the deserving awardees.
“The issuance of the PPL has ushered in a new dawn for our indigenous operators to hit the ground running in developing their awarded assets in line with industry best practices and to take full advantage of the increasing crude price in the international market.”
GenCos lament liquidity challenge, owe gas suppliers N1trn
He, however, noted that the passage of the Petroleum Industry Act (PIA) had brought an end to the era of marginal field awards.
Komolafe said Section 94(9) of the Act states that “No new marginal field shall be declared under this Act.”
“Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory
bidding process in line with Sections 73 and 74 of the Act,” he said.
Also, Mrs. Audrey Joe-Ezigbo, a former President of Nigeria Gas Association (NGA), said Nigeria must take advantage of the ongoing Russia-Ukraine crisis to attract investors to develop its abundant gas resources.
According to her, Africa and indeed Nigeria have a high energy poverty that can be transformed to opportunities by investors.
- Tinubu to IMF: We’ll provide safety nets for Nigerians to cushion reform’s effects - November 21, 2024
- Bauchi suspends 6 civil servants for stealing govt properties - November 15, 2024
- Zacch Adedeji: And the revenue keeps increasing… - November 15, 2024
