Stakeholders in the energy sector have called on the Federal Government to reverse the award of 2020 marginal oil fields, citing the high bidding cost and signature bonus as too demanding on bidders.
Specifically, they noted that the astronomical increase in the bidding cost and signature bonus between 2003 and 2020, have impacted negatively on investors.
The stakeholders, who spoke at the just-concluded Arbiterz Marginal Field Conference, tagged: “From Licence to Oil: Fundraising for Marginal Fields”, called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to refund the funds in order to ensure profitability of the marginal fields.
Speaking at the event, Mr. Collins Ibekwe, Subsurface Manager, Energy & Mineral Resources Limited, said: “Those who put the process together were not long term focused; they were too short term focused, but it will not be too late to say, let’s reserve this process, let’s return this money.
“You may say, my interest is to raise money for the government, but is that an optimal expectation? Should it not be better for the expectation to be, let’s grow new businesses; let’s grow these marginal fields and have many new indigenous operators that are capable.
“One of the ways to achieve this is for the government to tell itself the truth and say, ‘let’s return this money; let’s return this signature bonus and give these people a chance’’. It may sound unrealistic but thinking outside the box, that will be the real thing to do because it will give them the rest of inputs they will need to gather all the data they need to kick-start the process.”
Similarly, Ayodele Fasakin, CEO, Tritekk Consulting Limited and former Geoscience Business Manager, France, Schlumberger, who also suggested that the payment made for signature bonus be returned, said that NUPRC should be involved and see itself as a partner to the point of ensuring that operators secure funding rather than a regulator interested in earning revenue.
Earlier, Chief Executive, NUPRC, Engr. Gbenga Komolafe, who was represented by Edu Iyang, Head, Basinal Assessment and Lease Administration, NUPRC, had said that the commission has engaged awardees to resolve issues arising from the 2020 Marginal Field award and has also concluded drafting of model licence document, which is critical for issuing the Petroleum Prospecting Licences (PPL) to the awardees.”
