Technocrat Media, Abuja
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has awarded licenses to local oil companies to develop 49 marginal fields.
This development marks the end of a tender process that started two years ago by the Commission, according to Bloomberg.
Marginal fields are small blocks developed by indigenous companies not exploited in the last ten years. They are carved out of existing permits that operators such as Shell Plc or Chevron Corporation have chosen not to develop.
NUPRC at the release of the marginal fields licenses to the companies on Tuesday in Abuja, the Commission hopes that the move will help Africa’s biggest crude producer to reverse the country’s declining output.
NUPRC chief executive officer (CEO), Gbenga Komolafe, said the tender process which lasted for about two years raised more than 200 billion naira ($477 million) for the federal government.
According to NUPRC, 57 fields were put up for auction in June 2020 but the Commission has issued 49 petroleum prospecting licenses to more than 100 companies.
Mr Komolafe emphasised that the step would provide an enabling environment for the sustainable development of the country’s hydrocarbon resources.
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