OWNERS
of marginal fields or oil blocks that are not yet fully operational risk
takeover by the Federal Government, it was learnt by The Nation.
They
have until March 2015 to make them operational or forfeit them.
have until March 2015 to make them operational or forfeit them.
Some of
these affected oil blocks located along the Niger Delta creeks and environs
have been lying idle for years since they were awarded as a result of lack of
funds to commence operation.
these affected oil blocks located along the Niger Delta creeks and environs
have been lying idle for years since they were awarded as a result of lack of
funds to commence operation.
A
document obtained exclusively by The Nation from the Public Affairs Unit of the
Department of Petroleum Resources (DPR) showed that operators of the oil blocks
have delayed take-off due to their inability to access funds, difficulty in
agreeing to operational synergies with International Oil Companies (IOCs), the
increasing cost of labour, goods and service, technology limitations and
community problems.
document obtained exclusively by The Nation from the Public Affairs Unit of the
Department of Petroleum Resources (DPR) showed that operators of the oil blocks
have delayed take-off due to their inability to access funds, difficulty in
agreeing to operational synergies with International Oil Companies (IOCs), the
increasing cost of labour, goods and service, technology limitations and
community problems.
The DPR
however noted that “At present, there is no marginal field that is yet to be
developed. Apart from the producing fields, all other marginal fields are at
various stages of field development aimed at bringing the fields to production.
These fields have witnessed one form of field developmental activity or the
other since the time of award, so they are still being developed.”
however noted that “At present, there is no marginal field that is yet to be
developed. Apart from the producing fields, all other marginal fields are at
various stages of field development aimed at bringing the fields to production.
These fields have witnessed one form of field developmental activity or the
other since the time of award, so they are still being developed.”
The
developing marginal fields and their owners include: Atala, being managed by
the Bayelsa Oil & Gas Ltd; Ogedeh, owned by Bicta Energy System; Ke, by Del
Sigma Ltd; Dawes Island owned by Euroafric Energy Ltd; Ororo owned by Guarantee
Petroleum & Owena and Gas Ltd.
developing marginal fields and their owners include: Atala, being managed by
the Bayelsa Oil & Gas Ltd; Ogedeh, owned by Bicta Energy System; Ke, by Del
Sigma Ltd; Dawes Island owned by Euroafric Energy Ltd; Ororo owned by Guarantee
Petroleum & Owena and Gas Ltd.
Others
are Omerelu, being managed by Niger Delta Pet. Resources; Ofa, owned by
Independent Energy Ltd; Eremor, by Excel Expl. & Prod. Ltd;
Amoji/Matsogo/Igbolo, by Chorus Energy; Assaramatoru, by Prime Energy; Tom Shot
Bank, jointly owned by Associated Oil & Gas and Dansaki Pet. Ltd;
Tsekelewu, both owned by Sahara Energy Ltd and African Oil & Gas and Qua
Ibo, owned by Network E & P.
are Omerelu, being managed by Niger Delta Pet. Resources; Ofa, owned by
Independent Energy Ltd; Eremor, by Excel Expl. & Prod. Ltd;
Amoji/Matsogo/Igbolo, by Chorus Energy; Assaramatoru, by Prime Energy; Tom Shot
Bank, jointly owned by Associated Oil & Gas and Dansaki Pet. Ltd;
Tsekelewu, both owned by Sahara Energy Ltd and African Oil & Gas and Qua
Ibo, owned by Network E & P.
Marginal
fields still nearing production operation are: Akepo, owned by Sogenal Ltd;
Stubb Creek, by Universal Energy Res. Ltd; Oza, by Millennium Oil & Gas and
Ekeh, being managed by Movido E & P respectively.
fields still nearing production operation are: Akepo, owned by Sogenal Ltd;
Stubb Creek, by Universal Energy Res. Ltd; Oza, by Millennium Oil & Gas and
Ekeh, being managed by Movido E & P respectively.
The DPR
is however optimistic that the March 2015 deadline is enough time for those
companies yet to bring their marginal oil fields into production to do so.
is however optimistic that the March 2015 deadline is enough time for those
companies yet to bring their marginal oil fields into production to do so.
Spokesperson
for the DPR, Mrs Selema Osibodun said: “The deadline for the companies to bring
the fields to production is March 2015. There is still enough time within this
period for the companies to bring the fields to production.”
for the DPR, Mrs Selema Osibodun said: “The deadline for the companies to bring
the fields to production is March 2015. There is still enough time within this
period for the companies to bring the fields to production.”
As to
whether the DPR will grant further extension to the deadline, Osibodu said that
could only be decided by the Federal Government.
whether the DPR will grant further extension to the deadline, Osibodu said that
could only be decided by the Federal Government.
“Extension
of marginal field period is done by the Federal Government of Nigeria and not
DPR. Therefore the DPR is not in a position to comment on extension at this
time,” she stressed.
of marginal field period is done by the Federal Government of Nigeria and not
DPR. Therefore the DPR is not in a position to comment on extension at this
time,” she stressed.
Investigation
by The Nation revealed that there are 200 marginal oil fields in the Niger
Delta Basin with a maximum reserve base of about five billion barrels of oil.
by The Nation revealed that there are 200 marginal oil fields in the Niger
Delta Basin with a maximum reserve base of about five billion barrels of oil.
There
were 26 companies involved in marginal oil fields, many of which partnered
international companies to provide technical expertise and finance. They are
Associated Oil & Gas Limited; Bayelsa Oil Company Limited; Bicta Energy
Management Services Limited; Brittania U-Nig Chorus Energy Dansaki Petroleum;
Unlimited Del Sigma Energie Eurafric Energy Limited; Excel Frontier Oil Limited
and Goland Petroleum Development Co. Limited.
were 26 companies involved in marginal oil fields, many of which partnered
international companies to provide technical expertise and finance. They are
Associated Oil & Gas Limited; Bayelsa Oil Company Limited; Bicta Energy
Management Services Limited; Brittania U-Nig Chorus Energy Dansaki Petroleum;
Unlimited Del Sigma Energie Eurafric Energy Limited; Excel Frontier Oil Limited
and Goland Petroleum Development Co. Limited.
Others
are Guarantee Petroleum Limited; Independent Energy Limited; Midwestern Oil
& Gas; Millenium Oil & Gas Limited; Movido Exploration & Production
Limited; Network Exploration & Production Limited; Niger Delta Petroleum
Resources Limited; Pillar Oil Limited; Platform Petroleum Limited; Prime
Exploration & Production; Sahara Sogenal Limited; Universal Energy
Resources Limited and Waltersmith Petroman.
are Guarantee Petroleum Limited; Independent Energy Limited; Midwestern Oil
& Gas; Millenium Oil & Gas Limited; Movido Exploration & Production
Limited; Network Exploration & Production Limited; Niger Delta Petroleum
Resources Limited; Pillar Oil Limited; Platform Petroleum Limited; Prime
Exploration & Production; Sahara Sogenal Limited; Universal Energy
Resources Limited and Waltersmith Petroman.
Besides,
only a few of the 77 oil blocks awarded to oil firms in 2005 have even started
production.
only a few of the 77 oil blocks awarded to oil firms in 2005 have even started
production.
It is
estimated that a marginal field in the Niger Delta Basin will cost about $50 to
$80 million as development cost for a few years. Foreign technical or financial
partners will in most cases contribute 40 per cent of this amount.
estimated that a marginal field in the Niger Delta Basin will cost about $50 to
$80 million as development cost for a few years. Foreign technical or financial
partners will in most cases contribute 40 per cent of this amount.
Already,
the Federal Government has extended the farm-out date of the non-producing
marginal fields by four years with effect from 2011 to enable the companies to
address their challenges and bring the fields into production.
the Federal Government has extended the farm-out date of the non-producing
marginal fields by four years with effect from 2011 to enable the companies to
address their challenges and bring the fields into production.
Source: The Nation
