The Energy Republic July Edition 2022

NIGERIA ENERGY, OIL & GAS
"Our Main Focus is to Address Oil Theft,
Bring More Wells Online, and Working
with Investors On Gas Projects”
‘NUPRC Adopting a 'Phase-Down' Approach
in Utilizing Nigeria's Energy Resources'
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Shell Opens BID for EPC Work on Bonga
North Project
FG ISSUES MARGINAL FIELD LICENSES TO BOOST
Oil Production in Nigeria
T
he Federal Government of Nigeria handed over fiftyseven
oil fields licenses located onshore and swamps
of the Niger Delta to Ardova, Mainland, Matrix and
other indeginous oil companies with the mandate to
quickly develop these fields in order to boost Nigeria’s daily
oil production which had dwindled over the years.
The government said that these companies Ardova Oil,
Suntrust Oil, Energia Ltd and Mainland Oil which are among
the over 100 companies awarded the Petroleum
Prospecting Licence, PPL, has been given at most six years
to develop the fields and produce oil.
With Nigeria producing an average of 1.2 million barrels oil
per day, far short of the 2022 budget benchmark of 1.88
million barrels per day and 1.77 million per day OPEC quota,
the Federal Government has stepped up efforts to boost
the nation’s oil production.
Of the 57 fields, 41 fields have been fully paid for, with 37
PPLs issued.
Speaking at the ceremony in Abuja where the PPLs were
presented to the companies, the Minister of State
Petroleum Resources, Timipre Sylva, said the decision to
award the oil fields to the indigenous companies was a
deliberate government policy to encourage more
indigenous participation in petroleum operations.
“Indeed, this will boost activities in the oil and gas sector,
add to our production output and create additional
employment opportunities,” he stated.
Sylva explained that the Petroleum Industry Act, PIA, 2021
has abolished the marginal oil field policy making it possible
to issue new owners with PPLs.
“As you are aware, the implementation of the PIA is in top
gear. Consequently, the new awardees should note that
their assets will be fully governed by the provisions of the
Gbenga Komolafe, the Chief Execu ve Officer, Nigerian Upstream Petroleum
Regulatory Commission (NUPRC)
PIA as a result each successful field will be issued a PPL in line with the PIA.
“This is a complete departure from what used to be there where the marginal
field owners had no licences.
“This marks the beginning of a new era for us in the oil and gas sector and
urges the awardees of the PPL to take advantage of the opportunities
presented to exploit, develop and bring the assets to productive use”.
The Minister who also officially unveiled the Host Communities
Development Regulations, urged the companies to conduct their operations
in an environmentally friendly manner and also ensure that host
communities were taken care of.
Earlier, the Chief Executive of the Nigerian Upstream Petroleum Regulatory
Commission, NUPRC, Gbenga Komolafe said the new 57 licenses bring to 87
the number of marginal fields so far awarded in the country.
“Historically, the marginal fields award initiative began in 1999 and was
borne out of the need to entrench the indigenization policy of the
Government in the Upstream sector of the oil and gas industry and build local
content capacity.
“Besides, the initiative was also targeted at creating employment
opportunities and encouraging increased capital inflow to the sector.
“Nigeria is known as an oil-producing country and it is best for us to take
advantage of what the oil price is currently doing. We are very satisfied with
the entire process since it started in 2020,” he added.
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THE ENERGY REPUBLIC I SPECIAL EDITION