- In 2020, the Nigerian government conducted a bid round for 57 marginal oil fields of which 161 companies were shortlisted
- The 161 companies shortlisted as winners are expected to extract oil from the onshore, swamps, and shallow water.
- The last time such a license was issued was 17 years ago which gave birth to African exploration and production (E&P) companies which Dangote Group was strategic in its formation
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that it will 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 stood around 1.4 million barrels per day.
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Nigeria's marginal fields sub-sector has been the cornerstone of the country’s upstream local content development strategy since early 2000, as previous rounds gave birth to what are now strong local and regional African exploration and production (E&P) companies.
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Back story on the successful bidders for the oil fields
The 2020 marginal oil field bid round started in June 2020 and by May 2021, 161 companies were shortlisted as winners of the 57 marginal fields put on offer, which spanned onshore, swamp, and shallow water.
In January 2022, the Punch reports that the NUPRC announced that a total of 128 awardees emerged as successful bidders in the bid round of the 57 marginal fields put on offer.
However at the time that 33 awardees did not make payments during the 45 days window given to successful bidders to pay the required signature bonuses for the oil fields and as such had lost their awards to suitably qualified reserve bidders, the vanguard report added.
List of successful winners
Some of the companies which emerged as winners according to a report by BusinessDay include Matrix Energy, AA Rano, Andova Plc, Duport Midstream, Genesis Technical, Twin Summit, Bono Energy, Deep Offshore Integrated, Oodua Oil, MRS, and Petrogas.
A few others that succeeded in crossing the hurdle and had fully satisfied all conditions were: North Oils and Gas, Pierport, Metropole, Pioneer Global, Shepherd Hill, Akata, NIPCO, Aida, YY Connect, Accord Oil, Pathway Oil, Tempo Oil, Virgin Forest among others.
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He made the promise before the House of Representatives on the resumption of investigation on the state of the country’s refineries.
When asked, Kyari, who was represented by the General Manager, Refineries & Petrochemicals, Mustapha Yakubu reaffirmed to the lawmakers on the expected date of completion.