In a move to revitalize the nation’s oil and gas sector, President Bola Tinubu has given the green light for a fresh marginal field bid round.
This initiative aims to sell off oil and gas fields that have been abandoned by international oil companies (IOCs) for over a decade, presenting an opportunity for increased exploration and production.
The announcement was made by the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, during a facility tour of Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State. Lokpobiri stated that the bidding process is set to commence “soon.”
This development comes on the heels of efforts to boost the country’s oil and gas industry and attract investment.
The marginal field bid round is expected to unlock the potential of fields that have remained dormant for an extended period. The move is seen as a strategic step to harness Nigeria’s energy resources and promote economic growth.
The announcement coincided with a meeting between the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Oil Producers Trade Section (OPTS). The NEITI-Companies Forum served as a platform for discussions on enhancing transparency and accountability in the nation’s oil and gas and solid minerals sectors. The collaborative efforts between regulatory bodies and industry players reflect a commitment to fostering responsible and ethical practices within the extractive industries.
Notably, this new bid round follows the 2020 sale of about 57 marginal oilfields. Despite the conclusion of the process last year, several awardees have faced challenges in moving to site for the development of their assets. These challenges are primarily attributed to funding constraints and regulatory hurdles. The upcoming bid round is expected to address lessons learned from the previous exercise and create a more conducive environment for successful project development.
In a related development, the Federation Accounts Allocation Committee (FAAC) disclosed that the three tiers of government shared a total of N906.955 billion in October. This injection of funds into the economy is anticipated to contribute to ongoing efforts to strengthen various sectors and drive sustainable development across the country.
