10/08/2022

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NUPRC revokes marginal oil fields awarded to 33 companies over default

2 min read

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked marginal oil fields awarded to 33 companies for their default on payment of signature bonus with the 45 days deadline.

A total of 665 companies signified interest to acquire 57 fields that were on offer in May 2021.

The commission also realised N174 billion from signature bonus paid by companies for marginal oil fields.

ALSO READ: Niger Delta stakeholders urged to prepare papers that will provide clarity into PIA

Chief Executive Officer, Engr. Gbenga Komolafe, disclosed in Abuja at a meeting with the awardees on the award process.

The CEO noted that the guidelines on marginal field provided for 45 days for the payment of signature bonus and had since elapsed.

Komolafe explained that given the high-cost capital and government’s desire to achieve first oil in the fields, “the commission is making concerted efforts to ensure that the 2020 MFBR exercise is completed within the shortest possible time.”

He said that no new marginal field or farm-out agreements were envisaged under the PIA, explaining that prior to the enactment of the Act, fields were classified as marginal when they were not considered by license holders for immediate development due to assumed marginal economics under prevailing conditions.

He added: “Those with exploratory wells drilled on the structure were reported as oil and/or gas discoveries and left unattended for more than 10 years. Fields that leaseholders consider for farm-out due to portfolio rationalization. Lastly, fields which the President may, from time to time, identify as such.”

Komolafe said the fields would be returned to the basket of fields available for awards, stressing that the 2020 marginal field awards were unveiled in May 2021 by the then Department of Petroleum Resources (DPR).

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