NEWS

Nigeria Expects First Oil From New Marginal Fields By 2022

By Kelvin Alohan

The Federal Government has said it is expecting most of the marginal fields which were recently awarded to investors to achieve first oil starting from next year.

The Director, Department of Petroleum Resources (DPR), Mr Sarki Auwalu, said this in Lagos during a strategic engagement session with the Nigeria Extractive Industries Transparency Initiative, led by its Executive Secretary, Mr Orji Ogbonnaya Orji.

Extractive 360 reported the Minister of State for Petroleum Resources, Mr Timipre Sylva, as saying in March that government had received signature bonuses from 50 percent of the winners of marginal oilfields following the conclusion of the bid process.

In February, the DPR also stated that the government was expecting to generate at least $500m in revenue (N189.5bn) from the marginal field bid round. Auwalu said the government was already taking advantage of the success of the programme.

He said, “want to grow the reserves because the growth of the reserves gives us global competitiveness. OPEC will only give you volumes based on your recoverable reserves. We have to grow our reserves, and growing the reserves means more competitiveness for our nation.”

According to Auwalu, the DPR knows the volume every oil and gas well in the country produces. He said, “We give the technical production allowable for each well. We test every well and record it. So, we know where we are getting our volumes between now and 2024.

“We expect first oil from most of the marginal fields, for which we just concluded bid round, around January 2022 because all the things that will retard them will go, and we need that money for the country.”

The Federal Government, through the DPR, had announced on June 1, 2020 the start of the 2020 Marginal Field Bid Round, with 57 fields available for indigenous companies and investors interested in participating in the exploration and production business in Nigeria. 161 companies were shortlisted to advance to the final stage of the bid round.

On refining, the DRP boss who said a refining revolution was underway in the country, explained that “We have Dangote refinery coming up, we have BUA refinery. In fact, by 2024/2025, we may have domestic refining capacity of about two million barrels per day capacity, with NNPC refinery volumes of 445,000bpd, Dangote’s 650,000bpd and BUA’s 200,000bpd and others combined,” he said.

Poll

Subscribe To Newsletter


NNPC MONTHLY OIL AND GAS REPORT FEBRUARY 2021


CLICK IMAGE TO DOWNLOAD FULL REPORT IN PDF

NPC Monthly Report
Click to comment

Contact Us!

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top