Shafa, AA Rano, Matrix and others receive marginal oil mining licenses

Shafa, AA Rano, Matrix and others receive marginal oil mining licenses
Oil reserves department

By Obas Esiedesa, Abuja

Local oil companies, AA Rano, Shafa Exploration, Matrix Energy and Vhelblerg Exploration, were among the oil companies licensed by the DPR’s Department of Petroleum Resources on Monday for a marginal oil field.

The award was given a year after 591 companies applied to win the proposed 57 oil fields from the 2020 marginal field bidding round. Oil fields are on land, in swamps and at sea.

The DPR estimates that Nigeria will produce an additional 100 million barrels of crude oil from 57 fields in the coming years.

Speaking at the award ceremony in Abuja, DPR Director / CEO, Engr. Auwalu Sarki said the fields would increase Nigeria’s daily oil production by more than three million barrels per day.

Engr. Sarki said that after a long and strong period, 161 companies were included in the list of potential award recipients, of which 50 percent met all the conditions.

The department said it would not leave the companies after receiving the award, but would work with them to ensure that the first oil was processed immediately and obtained in record time.

He said: “The journey began exactly one year ago, on June 1, 2020, with the launch of the tender proposal registration portal. The portal facilitated the registration and application process and provided a transparent application.

“It also provided a platform for a virtual data room. It is important to note that the National Industrial Warehouse (NDR), which operates in the industry, provides all the necessary technical and logistical support for the successful operation.

DPR said it would ensure that local companies face minimal difficulties from the International Oil Companies, the original tenants of the fields.

He explained that the problems that hinder the full development of the last 17-year field award have been considered and resolved.

Of the 24 fields commissioned in 2003, 11 drew more than 40 million barrels of oil.

“We want to re-focus on the lessons of the previous sessions, change the approach, and develop a strategy to ensure that you (the companies) and the award-winning fields achieve early development.

“DPR will continue and guide all of you,” he said. For example, a guideline for an employment contract has been developed for co-award winners, and discussions on a farm contract between DPR and the tenants have reached a preliminary stage. ”

Sarki expressed optimism that the development of oil fields would boost jobs, as “all the awardees should hire people who bring more taxes and income to the government, and at the same time increase this GDP, because the industry’s contribution to GDP is very low.”

He said the awards would improve Nigeria’s oil production: “What the DPR was doing was assessing the various recovery factors. We have now changed the average recovery value we earned between 27-38. If we increase this by only five percent, we will reach 40 billion barrels, and at the same time we will reach more than three million barrels.

“We have identified 7,000 reservoirs and produce products from about 1,700 reservoirs. We have taken each of the reservoirs we produce to see what kind of enhanced oil production we need, and we are increasing reserves and production for the country once we have put in place secondary and tertiary recovery methods. ”

Bank Anthony Okoroafor, Chairman of the Board of Vhelblerg, spoke on behalf of the winners and thanked the DPR for working on a transparent proposal.

“It was open to everyone, everyone was communicated and they did their job very well,” he said.

However, he called on DPR to support the winning companies by talking to the IOC to allow operators to use their facilities if it is the most effective option.

Some other winners were Sigmund Oil Field, Emadeb Energy, Casiva Ltd, Duchess Energy and Duport Midstream.

Vanguard News Nigeria

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