Oil Production: Nigerian government Hands Over 57 Oil Fields To Ardova, Matrix, Others

The number of active oil rigs in Nigeria fell by 23.8 per cent to 16 in April amid the coronavirus-induced collapse in prices and demand for crude.

Fifty-seven oil fields located onshore and swamps of the Niger Delta were handed over to local oil companies by the Federal Government, with a charge on them to quickly develop the fields and produce first oil.

Matrix Energy, Ardova Oil, Suntrust Oil, Energia Ltd and Mainland Oil were among the over 100 companies awarded Petroleum Prospecting Licence, PPL, and given at most six years to develop the fields and produce oil.

With Nigeria producing an average of 1.2 million barrels oil per day, far short of the 2022 budget benchmark of 1.88 million barrels per day and 1.77 million per day OPEC quota, the Federal Government has stepped up efforts to boost the nation’s oil production.

Of the 57 fields, 41 fields have been fully paid for, with 37 PPLs issued.

Speaking at a ceremony in Abuja yesterday where the PPLs were presented to the companies, the Minister of State Petroleum Resources, Timipre Sylva, said the decision to award the oil fields to the indigenous companies was a deliberate government policy to encourage more indigenous participation in petroleum operations.

“Indeed, this will boost activities in the oil and gas sector, add to our production output and create additional employment opportunities,” he stated.

Sylva explained that the Petroleum Industry Act, PIA, 2021 has abolished the marginal oil field policy making it possible to issue new owners with PPLs.

“As you are aware, the implementation of the PIA is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA as a result each successful field will be issued a PPL in line with the PIA.

“This is a complete departure from what used to be there 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 urges the awardees of the PPL to take advantage of the opportunities presented to exploit, develop and bring the assets to productive use”.

The Minister who also officially unveiled the Host Communities Development Regulations, urged the companies to conduct their operations in an environmentally friendly manner and also ensure that host communities were taken care of.