The Department of Petroleum Resources (DPR) has explained why it recently granted discretionary awards of five marginal oil fields to indigenous companies in the country.
Director of the agency, Osten Olorunshola said in Lagos that DPR awarded Okwok and Ebok fields to Oriental Energy to compensate the company for loss of part of its OML 115 to Equatorial Guinea due to boundary adjustment.
He also said Ogbelle field was awarded to the Niger Delta Development.
The Department of Petroleum Resources (DPR) has explained why it recently granted discretionary awards of five marginal oil fields to indigenous companies in the country.
Director of the agency, Osten Olorunshola said in Lagos that DPR awarded Okwok and Ebok fields to Oriental Energy to compensate the company for loss of part of its OML 115 to Equatorial Guinea due to boundary adjustment.
He also said Ogbelle field was awarded to the Niger Delta Development.
According to him, Otakikpo and Ubima fields were recently awarded to Green Energy Ltd and Allgrace Energy Limited respectively based on the companies commitments to fund three pilot projects, using the Public Private Partnership mechanism.
Allgrace Energy Limited's ownership is allegedly being linked to a daughter of President Olusegun Obasanjo and the award of the field was alleged to have been done without due process.
The DPR boss disclosed that out of 29 discretionary marginal oil fields the agency has awarded since 2003, only nine have started production.
The nine producing fields are: Umusadege (Midwestern Oil & Gas); Umusati (Pillar Oil); Ibigwe (Waltersmith); Egboma (Platform Petroleum) and Obodugwa /Obodeti (Energia Petroleum/Oando).
Others are Ajapa (Britania-u); Ogbelle (Niger Delta); Ebok (Oriental Energy) and Uquo (Frontier) 1st Marginal Gas Operator.
Olorunshola, who said the marginal field programme in the country has not evolved as intended, stated that the challenges have been adequately analyzed and remedial legislation and actions are being proposed. According to him, identified enablers will be applied in the next marginal fields bid round.
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