FG Puts 57 Oil Fields On Offer, Insists Assets To Be Governed By Provisions Of PIA

Federal Government on Tuesday said the Petroleum Prospecting License (PPL) issuance ceremony for the 2020 Marginal Field Bid Round award process saw 57 fields offered.

Chief Timiprye Sylva, the Minister of State for Petroleum Resources, stated this at the Petroleum Prospecting License (PPL) issuance ceremony for the 2020 Marginal Field Bid Round in Abuja, urging the new awardees to note that their assets will be fully governed by the provisions of the PIA 2021.

“Distinguished guests, though the journey had its challenges, we have been able to surmount them to get to where we are today. Therefore, I commend the management and staff of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for ensuring the successful completion of this process, which began in 2020. I consider this a giant milestone for this administration.

“The roadmap of our marginal field awards began with two (2) fields awarded in 1999. Prior to this award, thirteen (13) fields had been awarded on land, eight (8) fields in swamp and nine (9) fields offshore leading to a cumulative of thirty (30) marginal fields so far awarded in Nigeria. It is worthy of note to state here that this present award process saw fifty-seven (57) fields offered and over 70% of them have their signature bonuses fully paid. This indeed is a testament to the increasing interest in our petroleum operations.

“Ladies and Gentlemen, as you are aware the implementation of the Petroleum Industry Act (PIA) 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021. As a result, each successful field will be issued a Petroleum Prospecting Licence (PPL) in line with the PIA. This is a complete departure from what used to be where the marginal field owners had no licences.

This marks the beginning of a new era for us in the oil and gas sector and I urge the awardees of the PPL to take full advantage of the opportunities being presented to exploit, develop, and bring the assets to productive use. As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected” he said.

The Minister of State noted that the fiscal provisions in the PIA ranks among the best globally, urging the awardees to seize the opportunities to quickly develop their fields and enjoy the full benefits in the PIA.

“It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period in line with President Muhammadu Buhari’s aspiration to increase production, grow reserves and reduce cost of production” he added.

Further addressing the awardees, Sylva said: “Dear awardees, please bear in mind that I have charged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to provide every necessary support to ease and facilitate seamless upstream petroleum operations in line with the objectives and provisions of the PIA. The Commission will support any aspiration for upstream development with midstream facilities integration towards maximizing the value chain.

It is envisaged that robust collaboration between the awardees and the Commission will lead to better understanding of the challenges being encountered. Therefore, I encourage you to promptly reach out to the Commission for guidance and support including mediations when challenges arise.

“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations. Indeed, this will boost activities in the oil and gas sector, add to our production output, and create additional employment opportunities for Nigerians”.