Nigeria: Stunted Output From Marginal Fields

29 October 2013

Chika Amanze-Nwachuku writes that the inability by some indigenous operators to bring marginal fields to production, almost 10 years after their award, is hampering Nigeria's aspiration to boost oil reserves and production capacity Nigerians were startled at the revelation on August 29- that is, exactly two months today- by the Department of Petroleum Resources (DPR), that only one out of 77 oil blocks awarded between 2005 and 2007 is currently producing.

What was even more shocking was that the non-producing oil blocks were at less than 30 per cent development, while several production sharing contracts (PSCs) and bank guarantees are yet to be sorted out. Some 44 oil blocks were awarded to foreign and indigenous operators during the 2005 oil licensing round. In 2006 16 oil blocks were awarded and 17 in 2007.

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