First crude production from marginal fields expected in 2022 –DPR

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The Department of Petroleum Resources (DPR) says it is expecting the first production of crude from some of the recently awarded 57 marginal oilfields in January 2022.

Mr Sarki Auwalu, Director, DPR, said this during a strategic engagement session with the Nigeria Extractive Industry Transparency Initiative (NEITI) on Wednesday in Lagos.

Marginal fields are smaller oil blocks typically developed by indigenous companies.

Auwalu said the 2020 marginal oilfield bid round was almost at completion stage with successful companies paying their signature bonuses.

He said the award of the marginal oilfield would increase Nigeria’s oil and gas production capacity and reserves to boost the country’s resources for national development.

The DPR boss said the bid round, which began on June 1, 2020, was aimed at deepening the participation of indigenous companies in the upstream segment of the industry.

According to him, it will also provide opportunities for technical and financial partnerships for investors.

The director said some of the indigenous companies that emerged from previous marginal oilfield bid rounds were today competing with international oil companies, which was very good for the nation.

Auwalu explained that the DPR generated about N452 billion for the Federal Government from January to March, adding that the regulatory agency was targeting an additional N900 billion for the months of April to June. The DPR, he said, operates a cashless revenue system which enables all revenue remittances to be paid directly to the federation account in total compliance with the Treasury Single Account (TSA) policy.

SOURCE: THE SUN

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