FG to cancel 97 idle marginal fields

Date:

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri disclosed that the Federal Government will cancel about 97 marginal field awards, due to the awardees’ refusal to begin the production of crude oil on the fields.

Lokpobiri disclosed this at an event in Abuja, said the fields would be re-awarded to competent investors with the capacity to begin production on the assets.

He said, “In addition to all the efforts we are making to create the best investment climate for the International Oil Companies and independent producers to increase their production, one key thing that we need to put our minds to, is to actually give access to those who have capacity.

“A few years ago, we did marginal field allocation, and almost 100 marginal fields (awards) were given, but only three, as I’m speaking to you today, are producing. The three years given to them are almost over. They will shout my name, but I’m going to cancel them.

“Look, if you are given a marginal field, it is not for you to take it as a souvenir and keep it in your study. It doesn’t add any value to you or to our country. If today those marginal fields were producing, we would have been able to get sufficient feedstock for our modular refineries and also increase our total production quota. But everybody is interested in getting marginal fields without having the capacity, both financially and technically to be able to put the assets to use.”

Source: The Punch

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