The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that only 17 of the 30 marginal oilfields awarded since 1999 are currently producing.
It gave a breakdown of the allocation of the fields to indigenous operators as: two fields awarded in 1999, 24 in 2003/2004, one each in 2006 and 2007, and two in 2010. 10 years later, in 2020, 57 fields were put up for bidding.
The Commission’s Chief Executive Officer, Mr Gbenga Komolafe, made the disclosure at the Strategic International Conference of the Association of Energy Correspondents of Nigeria (NAEC) on Thursday, in Lagos.
Komolafe, who was represented by Head, National Oil and Gas Excellence Centre (NOGEC), Mr Abel Nsa, 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 creating employment opportunities.
He recalled that one of the major tasks inherited by the NUPRC, upon its inauguration in 2021 was the need to conclude the 2020 Marginal Field Bid Round exercise and the process had been concluded with the issuance of Petroleum Prospecting License (PPL) to the deserving awardees.
He, however, noted that the passage of the Petroleum Industry Act (PIA) had brought an end to the era of marginal field awards, as Section 94(9) of the Act states that “No new marginal field shall be declared under this Act.”
He said the commission was also in the process of issuing additional seven regulations in the phase two of the exercise in consultation with stakeholders in line with Section 216 of the PIA.
Also speaking, 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.
