Tinubu Orders Sale of More National Assets, Approves Fresh Bids For Marginal Oil Fields
- President Bola Tinubu has ordered the sale of more national oil and gas assets
- The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, stated this while touring the Waltersmith modular refinery in Imo state
- He said about 57 marginal oil fields abandoned by international oil companies would be given to local companies
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
President Bola Tinubu has approved the conduct of a fresh marginal oil bid round to offer for sale oil and gas fields left by international oil firms, which have been lying untapped for more than a decade.
Minister of Petroleum (Oil) Heineken Lokpobiri revealed this as he toured the Waltersmith Petroman Oil Limited’s Modular refinery in Ibigwe in Ohaji/Egbema local government area of Imo state.
Source: Facebook
FG moves to sell oil fields to refinery owners
Lokpobiri said the bid rounds would commence soon.
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The new bid rounds come after three years since 57 oil fields were put up for sale, and the process concluded last year.
ThisDay reports that many awardees struggle to mobilise to the site to develop their assets due to funding and regulatory issues.
The minister said in a statement on Wednesday, November 22, 2023, that he had obtained presidential approval to conduct fresh bid rounds for the marginal oil fields.
He said marginal oil fields would be prioritised in terms of their proximity to those with modular refineries so they can produce.
A new modular refinery begins production in Imo
The Nigerian government exclusively reserves marginal oil fields for local firms to participate in oil and gas exploration and production space.
Marginal oil fields are awarded to boost Nigeria’s oil and gas production and reserves, create jobs, and contribute to host communities’ development.
Lokpobiri applauded the Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) for supporting the Nigerian government’s plan to improve domestic refining capacity.
He said:
“The quickest way to fix our energy challenge in the country should be through modular refineries while we await the total rehabilitation of the big refineries.”
According to the minister, the 5,000-per-stream-per-day facility has been a source of diesel, kerosene, naphtha, and high-fuel oil to the domestic market since it began operation three years ago.
FG threatens to revoke 98 marginal oil fields
In October, the Nigerian government threatened to revoke 98 marginal oil fields due to their inability to begin production.
Legit.ng report that the Nigerian government indicated plans to revoke most of the oil licenses granted two years ago by the administration of former President Muhammadu Buhari.
The development comes 30 months after the federal government completed the acquisition of the marginal oil fields and notified the winners.
According to Bloomberg, Lokpobiri disclosed this while speaking at the Nigeria Economic Summit Group (NESG) conference in Abuja.
The minister revealed that only three of the 100 licenses granted in 2021 are operational.
He added that the Nigerian government would revoke the licenses of others immediately after the deadline is exceeded.
FG issues oilfield licenses to successful companies, 17 years after the last
Legit.ng also reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that it would issue Petroleum Prospecting Licences (PPL) to successful awardees of Marginal Fields in the 2020 Bid Round on Tuesday, June 28.
The disclosure came from Mr Gbenga Komolafe, the Chief Executive Officer of NUPRC, in a statement published on its website.
According to the statement, the license would be conducted pursuant to the provisions of the Petroleum Industry Act (PIA), 2021, and is expected to ensure that the awardees contribute to the country’s increased crude oil production capacity, which currently stands around 1.4 million barrels per day.
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Source: Legit.ng
