To deepen the participation of indigenous oil companies in the upstream sector of the oil and gas industry, the Federal Government on Thursday commenced the second oil marginal fields licensing round with assurance of transparency and accountability.
Declaring the bid round open at a press conference in Abuja on Thursday, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke explained that the licensing would boost the participation of Nigerian indigenous companies in the upstream and generally increase exploration and production activities in the oil and gas sector to the benefit of Nigerians and the Nigerian economy.
Giving details of the licensing round, she revealed that a total of 31 fields are on offer, 16 of them onshore and the remaining 15 in the continental shelf.
“The Federal Government is committed to transparency in the bid process and also encouraged companies indicating interest in the assets to form consortia that would enable them leverage upon each other’s strengths”, Alison-Madueke said.
“Over the next two weeks, the Department of Petroleum Resources will undertake a road show to different parts of the country about the programme. This will be followed by a three-and-a-half months of competitive bidding process in line with the Federal Government’s commitment to openness and transparency in the conduct of business activities in the country”.
Giving an update on the last marginal fields bid round of 2001, the minister disclosed that of the 24 fields allocated to 31 indigenous oil companies in that exercise, eight were already producing while the others were at various stages of development.
Alison-Madueke noted that the marginal field operators who currently account for about one per cent of the nation’s production have also recorded huge discoveries in excess of 100 million barrels to the nation’s reserve base, adding that of the eight assets that have so far been divested by the IOCs, at least four are held by active marginal field operators who have continued to demonstrate remarkable technical ability in operating significantly larger assets.
“In their operations, the companies have addressed corporate social responsibility as a critical element, by providing for stakeholder participation as part of their success factors”, she said.
“In addition, their development strategy is in line with the nation’s Gas Flare Policy and global environmental guidelines on Green House emissions, by ensuring full utilisation of their associated gas. Indeed, one of them has established a modular refinery for diesel production, which is the first of its kind in the country”.
The minister explained that the Federal Government is encouraged by the modest achievements of the marginal field operators in line with the objectives of the local content policy to kick off this marginal field licensing round.
On the proposed sale of the refineries, Alison-Madueke reiterated government’s stance to move away from managing major infrastructure, adding that government was going ahead with the original plan to rehabilitate the refineries so as to be able to get a premium price from their sale.
The minister maintained that adequate room has been made in the privatisation timetable for engagement with all stakeholders to resolve all labour issues to ensure a win-win situation for all.
