Home News FG Nets N200bn, $7m From Marginal Fields Sale

FG Nets N200bn, $7m From Marginal Fields Sale

by Our Reporter

The federal government said it has generated about N200 billion and $7million from the 2020 marginal fields bid round which it concluded with the award of oil petroleum prospecting licenses (PPLS) to winners in Abuja.

Chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, made this known at the official unveiling of Host Communities Development Prospecting Licenses and presentation of PPLs to 2020 Marginal Field Awardees in Abuja.

The commission also officially unveiled the Host Communities Development Regulations and model Petroleum Prospecting Licences (PPLs).

Komolafe disclosed that the PPLs were awarded to 37 marginal fields who had fulfilled all the criteria for the award of the licences.

The 37 successful fields were won by a total 161 successful 2020 marginal fields award winners.

Among the  successful companies are Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd. and Sigmund Oil Field Ltd.

Others are Shafa Exploration and Production Company Ltd., Emadeb Energy Ltd., Zigma Ltd., Inland Basin Ltd. and Petraco Oil Ltd., among others.

Minister of state for Petroleum Resources, Timipre Sylva, speaking  during the event, said the maiden presentation of the PPL was part of the implementation of Petroleum Industry Act (PIA), 2021.

Sylva urged the 57 marginal field investors to quickly develop their assets and enjoy the full benefits in the Petroleum Industry Act (PIA), which seeks to, among others, increase crude oil production, grow reserves and reduce cost of production.

He further tasked the award winners to take advantage of the current attractive oil prices to bring the fields into full production within a short period in line with President Muhammadu Buhari’s aspiration.

The Minister assured the investors that the industry regulator, NUPRC, will support any aspiration for upstream development with midstream facilities integration towards maximizing the value chain.

“It is envisaged that robust collaboration between the awardees and the Commission will lead to better understanding of the challenges being encountered. Therefore, I encourage you to promptly reach out to the Commission for guidance and support including mediations when challenges arise.

” The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations. Indeed, this will boost activities in the oil and gas sector, add to our production output, and create additional employment opportunities for Nigerians”, the minister stated.

Earlier in his remarks, the chief executive of NUPRC, Gbenga Komolafe, recalled that the marginal fields award initiative began in 1999, adding that 30 fields had been awarded, with 17 currently producing.

According to NUPRC, 57 fields presented in the 2020 bid round met the criteria and were subsequently offered for bidding.

Out of the 665 entities that expressed interest in the exercise,161 emerged as potential award winners, while out of the 57 fields, 41 were fully paid for.

Also, 37 fields were issued with the PPLs after they satisfied all conditions for the award.

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