At least 16 of the 47 companies that won the marginal oilfield bid last year have submitted their field development plans, according to the Nigerian Upstream Regulatory Commission (NUPRC).
In a statement, the commission gave a progress report of the companies after concluding the 2020 marginal oilfield bid round. It said: “The strategy has already yielded positive results with 16 companies submitting Field Development Plan (FDP), two already commencing unitization processes, six re-entries and two having gone through the Extended Well Test (EWT).”
NUPRC also announced that it is planning a production-based lending engagement that will help them source needed capital to commence full field development towards hitting first oil.
The engagement which is planned to commence soon will be between the Commission, Petroleum Production Licence (PPL) Awardees, Exploration and Production (E&P) service providers and Nigerian Banks. It is to provide platforms for strategic partnership/alliance between the awardees and the service providers for Well Re-entry and drilling services. The arrangement is to be offered on service fee recoverable by the service providers from production to be attached.
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The Commission Chief Executive (CCE), Engr. Gbenga Komolafe, also said NUPRC has already concluded plans to organise an E&P International Financing Road show in Abuja soon.
It is for financiers, investment bankers, private equities, and multi-lateral institutional investors. The initiative is to showcase the high value quick win opportunities available to investors in the recent PPL awards, the on-going National Gas Flare Commercialization Programme, as well as the on-going Mini-bid awards.
Since the award of 47 PPLs to solely Nigerian entities in June 2022, the Commission has made concerted efforts within the stipulations of the law, to provide statutory guidance and support towards the progression of the assets to field development.
Steps taken include the convocation of Regulatory Induction Programme for PPL awardees to enable them have the requisite understanding of the statutory protocols from the award to first oil; and a week-long tripartite engagement in Lagos for all awardees and initial asset owners in December last year, with about 30 entities in attendance, the statement noted.
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