The Federal Government of Nigeria (FG) has awarded licenses to develop Margin Oil Fields in Nigeria.
This follows a frustrating two-year process and multiple court cases which earlier restrained the FG from offering licenses to winners of marginal oil fields.
Ijaw leaders in Bayelsa had earlier put up a fight seeking to halt licensing on marginal oil fields located in their areas.
- Awardees will not be expected to develop more oil fields which will significantly boost productivity in the oil sector amidst rising global demand and high oil prices.
- The news was first disclosed in a report by Bloomberg on Tuesday evening, stating that the FG raised the sum of $477 million in the exercise.
What the report said:
The report revealed that the Nigerian Upstream Petroleum Regulatory Commission issued 49 petroleum prospecting licenses to more than 100 companies, compared to the original 57 bids it was seeking 2 years ago.
- Gbenga Komolafe, the agency’s boss stated that the field sales “raised more than N200 billion ($477 million), adding that the FG hopes the sales help boost Nigeria’s declining output.
What you should know
- Nairametrics reported last month that a Yenagoa Division of the Federal High Court has restrained the Federal Government from issuing licenses on marginal oil fields in the Niger Delta, following a 2020 suit by some Ijaw leaders after they approached the court seeking to halt licensing on marginal oil fields located in their areas.
- The plaintiffs include Chief Brown Agu (Opu Agu VIII), Mrs. Rosemary John-Oduone, President Ijaw Women Connect, and Mr. Femowei Friend on behalf of themselves and the Ijaw ethnic nationality.
- They prayed the court to restrain the Federal Government from further advertising and receiving bids in respect of the marginal fields.
- Justice Dashen who granted the order restraining the FG adjourned the matter for June 8 for the continuation of the hearing and ruling on pending motions before the court.
- Marginal fields are shallow fields that may not produce crude oil in commercial quantities immediately and would require further development to boost volume.
Follow us for Breaking News and Market Intelligence.
I love your analysis Weldon