The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the federal government will revoke about 97 marginal field awards due to the awardees’ inability to begin crude oil production activities on the fields since they won the awards in 2020.
Lokpobiri disclosed this recently in Abuja during a stakeholders’ event.
According to him, the fields would be re-awarded to competent investors who could begin production on the assets.
He said, “In addition to all the efforts we are making to create the best investment climate for the international oil companies and independent producers to increase their production, one key thing that we need to put our minds to is to give access to those with capacity.
“A few years ago, we did marginal field allocation, and almost 100 marginal fields (awards) were given, but only three, as I’m speaking to you today, are producing. The three years given to them are almost over. They will shout my name, but I’m going to cancel them.
“Look, if you are given a marginal field, it is not for you to take it as a souvenir and keep it in your study. It doesn’t add any value to you or our country. If those marginal fields were producing, we would have been able to get sufficient feedstock for our modular refineries and also increase our total production quota. But everybody is interested in getting marginal fields without having the capacity, both financially and technically, to be able to put the assets to use.”
Recall that in June 2021, the federal government, through the defunct Department of Petroleum Resources, issued letters of award to investors who emerged successful in the marginal field bid round launched a year earlier.
The defunct DPR announced on June 1, 2020, the start of the 2020 Marginal Field Bid Round, with 57 fields available for indigenous companies and investors interested in participating in the exploration and production business in Nigeria.
Some of the companies that were called upon to receive their award letters at the time included A.A. Rano Nigeria Limited, Dutchess Energy, Emadeb Energy Services Limited, Matrix Energy Limited, Shafa Exploration and Production Company Limited, Casiva Limited, Duport Midstream Company Limited, and Vhelbherg Exploration and Production Development Company Limited.
In January 2022, the government revealed that 128 awardees emerged as successful bidders in the 2020 Marginal Field Bid Round, adding that they had made complete and partial payments for signature bonuses in the oil fields.
