01 February 2017, Sweetcrude, Abuja — The Federal Government has approved the renewal of licenses for 17 marginal oil fields that expired in 2015.
The Ministry of Petroleum Resources, in its scorecard for 2016 and outlook for 2017, also stated that through the Department of Petroleum Resources (DPR) it has approved seven new field development plans, aimed at growing the country’s oil and gas output.
Though the details of the affected marginal fields whose licenses were renewed were not given, the DPR, in the document, said the approval for the extension was secured from the Federal Government in 2016.
In addition, the DPR stated that the seven new field development plans have the potential to increase the country’s oil and gas production capacity by 155,600 barrels of oil per day when fully commissioned.
It also noted that it commissioned one Eremor marginal field to first oil, thereby, increasing the number of the total number of producing marginal fields to 12.
The DPR further disclosed that it played a major role in enhancing the distribution of petroleum products in Nigeria, stating that it licensed additional 1,050 retail outlets across the Federation within 2016.
It also stated that it facilitated an increase in national petroleum products storage capacity by licensing additional four depots with a combined storage capacity of 3,529 cubic metres (m3) of Premium Motor Spirit, PMS, 39,691m3 of Automotive Gasoline Oil, AGO, and 36,021m3 of Household Kerosene.
In its outlook for 2017, the DPR said it will “Conduct bidding round for open blocks and conclude the previous aborted marginal fields bid round respectively to enhance entry of new players, stimulate competition and generate revenue for the Government.
“Accelerate regulatory approvals for lease renewals, assignments, and relinquishments.”
On its own part, the Petroleum Products Pricing Regulatory Agency (PPPRA) said it helped the federal Government to save an estimated sum of over N500 Billion as at November 2016.
According to the PPPRA, the amount was saved through the introduction of the Price Modulation Mechanism and the Appropriate Pricing Framework, which is currently being deployed to other sectors of the economy.
Also in the document, the Nigerian National Petroleum Corporation (NNPC) said it had commenced the export of crude oil through Warri Refining and Petrochemical Company (WRPC) as an alternative to Trans-Forcados Pipeline (TFP) which has been frequently vandalised in recent times.
The NNPC further stated that Joint Venture (JV) Cash Call funding arrears of up to December 2015 had been fully reconciled with its partners, while all the parties had agreed to a repayment plan.
The NNPC disclosed that the need to cut cost forced it to streamline the Nigerian Petroleum Development Company’s (NPDC) operations by terminating the Strategic Alliance Agreements (SAAs) with Atlantic Energy on nine assets, while it successfully renegotiated the SAA with Seven Energy on three assets.
In addition, the NNPC said, “The success of NNPC/Chevron JV $1.2 billion multi-year drilling package for the development of 36 offshore/onshore oil wells has spurred further alternative funding arrangements such as Sonam-Okan integrated project (NNPC/Chevron JV).
“In pushing for cost efficiency and profitability, we embarked on the renegotiation of all existing contracts and achieved between 5-30 per cent discounts consistent with prevailing low oil price regime. This activity alone translated to about $1 billion in savings for the Corporation.”