Indigenous oil firms, A.A. Rano, Shafa Exploration, Matrix Energy, and Vhelblerg Exploration were among oil companies awarded marginal oil field license by the Department of Petroleum Resources, DPR, on Monday.

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

The announcement was made by the department of petroleum resources (DPR) on Monday. 

It is coming months after 57 out of 591 companies were announced by the DPR as winners of the bids to win 57 oil fields. 

The oil fields are located onshore, swamps and offshore. 

Impact 

Speaking at the award ceremony in Abuja, DPR Director/CEO, Engr. Auwalu Sarki said the fields would boost Nigeria’s daily oil production capacity beyond the current three million barrels per day.

According to him, Nigeria would produce additional 100 million barrels of crude oil from the 57 fields, in the coming years.

Sarki expressed optimism that the development of the oil fields would stimulate job creation because “all the awardees have to recruit people which mean more taxes and revenue to government and at the same time it enhances the GDP because the contribution of the industry to the GDP is very low.”

How winners of the bids were selected 

Sarki revealed that after undergoing lengthy and vigorous process, 161 companies were shortlisted as potential awardees out of which 50 percent have met all conditions.

According to him: “The journey began exactly one year ago on June 1, 2020 with the launching of the Bid round registration portal.

“The portal eased the registration and application process and ensured a transparent exercise.

“It also provided the platform for the virtual data room. It is important to state that the industry-enabled National Data Repository (NDR) provided all the requisite technical and logistics support for the successful conduct of the exercise.”

List of 10 companies awarded oil licences 

1. A.A. Rano 

2. Shafa Exploration

3. Matrix Energy

4. Vhelblerg Exploration

5. Emadeb Energy

6. Sigmund Oil Field

7. Casiva Ltd 

8. Duchess Energy

9. Duport Midstream

10. KIZI oil and Gas

DPR pledges support to the licenced companies 

Sarki assured the licenced companies that the DPR would not abandon them after the award.

He declared that the DPR would work with them to ensure immediate development and attainment of first oil in a record time.

The director went on to note that DPR would ensure that the indigenous companies faced minimal challenges from the International Oil Companies, the original lease owners for the fields.

Bidding exercise was transparent- bid winners 

Speaking on behalf of the bid winners, the Chairman of Vhelblerg, Bank Anthony Okoroafor thanked DPR for holding a transparent bid exercise.

According to him: “It was open to everybody; there was communication established with everybody and they did their own work very well.”

He, nevetheless, urged DPR to support the winning firms by talking to IOCs to allow the operators use their facilities if it was the most effective options.