The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced the federal government’s intention to rescind approximately 97 marginal field awards.
This action is prompted by the failure of the awardees to initiate crude oil production activities on these fields, despite winning the awards in 2020.
Lokpobiri made this revelation during a recent gathering of stakeholders in Abuja. He emphasized that the fields will be re-awarded to capable investors who can commence production on these 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.”
In June 2021, the federal government, acting through the now-defunct Department of Petroleum Resources, issued award letters to successful investors who had won bids in the marginal field bid round launched a year prior.
The defunct DPR had announced the commencement of the 2020 Marginal Field Bid Round on June 1, 2020, offering 57 fields to indigenous companies and investors interested in engaging in exploration and production activities within Nigeria.
Among the companies called upon to receive their award letters were 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.
By January 2022, the government disclosed that 128 awardees had emerged as successful bidders in the 2020 Marginal Field Bid Round, noting that they had completed both full and partial payments for signature bonuses associated with the oil fields.
