The Federal Government has handed 57 oilfields to 161 local oil companies, ending a process that began since 2020. The firms were selected out of 665 entities that indicated interest in the oil project.
Some of the companies selected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) include Ardova Plc, Shafa Exploration and Production Company Ltd, Sigmund Oil Field Ltd, and Petraco Oil Ltd.
Also on the list are Matrix Energy Ltd., Inland Basin Ltd., Sun Trust Oil Company Limited, Emadeb Energy Ltd, Island Energy Ltd, Deep Offshore Integrated Service Ltd., and Zigma Ltd, amongst others.
According to the News Agency of Nigeria (NAN), out of the 57 oilfields, which were carved from the oil blocks Shell and Chevron decided not to develop, 41 were fully paid for, with Petroleum Prospecting Licences (PPLs) issued for 37 of the fields after requirements were met.
The local oil companies were made public on Tuesday in Abuja, where the model for Petroleum Prospecting Licences (PPLs) and Host Communities Development Regulations were unveiled officially.
Speaking at the event, the Minister of State for Petroleum Resources, Timipre Sylva, said, “The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.
“As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.
“It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.
“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,’’ he said.