A total of 14 companies have made an opening bid for the development and financing of Oil Mining Lease 119 (OML 119), according to the Nigerian National Petroleum Corporation (NNPC).

The Details: Group Managing Director of the Corporation, Mele Kyari stressed that the oil field was very important to the NNPC. He made this declaration at an official ceremony dedicated to the opening of bids for the Funding and Technical Services Entity (FTSE).

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Why this matters: Kyari explained that the oil field was in line with the Federal Government’s plans to increase the production of crude oil and natural gas, expand its reserves and monetize its natural gas deposits.

The Selection Process: Chief Operating Officer, Corporate Services, Faruk Sa’id assured all stakeholders present of a free and fair selection process for the potential FTSE. He added that the right company would be chosen based on stipulated laws and national interest.

Abdulhamid Aliyu, who serves as the Group General Manager, Supply Chain Management also insisted that the process would be just and fair.

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What you should know: OML 119 is located in the southeastern Niger Delta, approximately 50 kilometres offshore. The two producing fields on the block, Okpoho and Okono, were discovered by the Nigerian Petroleum Development Company (NPDC) in 1978 and 1983 respectively. Despite encouraging well results, the fields’ development did not start until 2001, when Agip Energy and Natural Resources (AENR) signed a modified service contract with NPDC.

In 2017, the House of Representatives Committee on Oil and Gas vowed to issue a warrant of arrest on managing directors of 10 oil firms, should they fail to appear before the committee to account for the unremitted $250 million to the Federal Government’s purse.

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The oil firms included: Aiteo Energy, Neconde Energy, Frontier Energy and seven indigenous oil companies for allegedly not showing interest to remit the fund.

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The committee, headed by Hon Jerigbe Agom, also accused the Managing Director of Nigerian Petroleum Development Company (NPDC), of failure to remit $10 million accrued debt in line with the agreement it reached with the Department of Petroleum Resources, DPR.

The Managing Director was invited by the committee to explain why the Operating Mining Lease 119 (OML 119) was producing 5,000 barrels in spite of its capacity to deliver beyond.

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