The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced the Federal Government’s intention to revoke approximately 97 marginal field awards.
This decision stems from the fact that the awardees have been unable to initiate crude oil production activities on the fields since receiving the awards.
Speaking at an event in Abuja, Lokpobiri emphasized that these fields will be re-allocated to competent investors with the capability to kickstart production activities on these assets.
He explained, “In addition to our ongoing efforts to create a favorable investment climate for both International Oil Companies and independent producers to increase their production, we must also focus on granting access to those with the necessary capacity.”
He continued, “A few years ago, we allocated nearly 100 marginal fields, but as of today, only three are in production.
The allotted time for these awardees is almost up, and although there may be objections, I am determined to cancel those who have not utilized these fields.
Obtaining a marginal field is not for collecting dust on a shelf as a keepsake. It should contribute value to both the awardees and our country.”
Lokpobiri also highlighted the missed opportunities, stating, “If these marginal fields were currently in production, they could have provided essential feedstock for our modular refineries and bolstered our total production capacity.
However, many seem interested in acquiring these fields without possessing the necessary financial and technical capabilities to utilize them.”
This decision was communicated by the minister via an audio clip provided by his media aide in Abuja.
In June 2021, the Federal Government, through the defunct Department of Petroleum Resources, issued award letters to successful investors from the 2020 Marginal Field Bid Round, which was launched in June 2020.
A total of 128 awardees had emerged from this bid round by January 2022, with some notable companies such as 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 having received awards and made payments for signature bonuses in the oil fields.
