FG pledges transparency in marginal oil fields licensing

The Federal Government on Thursday pledged to ensure transparency in the second oil marginal fields licensing for the upstream sector of the oil and gas industry.

The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, made the pledge on Thursday in Abuja at the inauguration of the second oil marginal fields licensing.

“Today, we are here to flag off the second marginal field licensing round,

“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 three and 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,’’ she said.

Alison-Madueke said that the bid process was designed to boost the participation of Nigerian indigenous companies in the upstream sector, while increasing exploration and production activities in the oil and gas sector.

Giving details of the licensing round, the minister said that a total of 31 fields were on offer with 16 of them located onshore, while the remaining 15 were in the continental shelf.

She advised the indigenous companies that were interested in the bid process to form consortia that would enable them leverage upon each other’s strengths.

Alison-Madueke also gave an update on the last marginal fields bid round which was held in 2001.

She noted that out of the 24 fields that were allocated to 31 indigenous oil companies in that exercise, eight were already producing, while the others were at various stages of development.

She said that the marginal field operators, who currently accounted for about one per cent of the nation’s oil production, had also recorded huge discoveries in excess of 100 million barrels to the nation’s reserve base.

The minister said that out of the eight assets which had so far been divested by the International Oil Companies (IOCs), at least four were held by active marginal

field operators.

She added that these active marginal field operators had 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.

“In addition, their development strategy is in line with the nation’s gas flare policy and global environmental guidelines on greenhouse emissions, by ensuring full utilisation of their associated gas,’’ she said.

Alison-Madueke said the Federal Government was encouraged by the modest achievements of the marginal field operators, in line with the objectives of the local content policy, to begin the current marginal field licensing round.

On the proposed sale of the refineries, the minister reiterated the Federal Government’s resolve to move away from managing major infrastructure.

She stressed that the government was going ahead with its original plans of rehabilitating the refineries to enable them to have a premium value whenever they were sold.

Alison-Madueke said that ample provision had been made in the privatisation timetable for the engagement with all stakeholders to resolve all labour-related issues to ensure a win-win situation for all. (NAN)