UNCERTAINTY OVER N4.314TR REVENUE FROM MARGINAL FIELDS

An oil field in the Niger Delta Photo: Getty Image

• Govt loses N1.29b daily to unproductive oil wells

The nation’s plan to earn additional $14.100 billion (N4.314 trillion) from 300 million barrels of crude oil is uncertain as licensed marginal fields are unable to engage in meaningful exploration and production activities 13 years after.

The country targets daily earnings of $4.23 million (N1.29 billion) from an average of 90,000 barrels of oil per day. Experts say that 18 of the marginal fields with an average capacity of 5,000 bpd each could produce 90,000 bpd of crude oil.

This leakage is a major loss to the economy as the revenue would have been used to plug budget deficits and provide infrastructure that would boost national development.

Data from the Nigerian National Petroleum Corporation (NNPC) indicate that the Federal Government has 200 fields classified as marginal by operators due to low-ranking in investment portfolio and/or remoteness to existing facilities.

According to the NNPC, of the 200 fields, 24 granted licences by the Department of Petroleum Resources (DPR) have an estimated reserve of about 300 million barrels of crude. Of the 30 marginal fields awarded by the government since 2004, only 12 are active. It was learnt that18 of these licences have been classified as non-producing and require the farmees to relinquish the assets (having had the opportunity of a licence renewal after the initial five years duration expired).

The marginal fields awarded cumulatively produce around 2.6 per cent of daily oil production and 2.5 per cent of the estimated 4,000 MMscf gas productions in the country, due largely to the inability of indigenous firms to fully monetise the assets.

The producing wells, according to the latest statistics from the DPR, are Egbaoma Oil Mining Licence (OML) 38 belonging to Platform Petroleum; Ebendo OML 56 belonging to Energia Limited; OML 56 Omusati, Pillar Oil Limited; OML 56 Ebok, Oriental Energy; OML 54 Ogbelle, Niger Delta Petroleum Limited; and OML 56 Umusadege, Midwestern Oil and Gas.

Others are OML 90 Ajapa, Brittania-U Nigeria Limited; OML 16 Ibigwe, Walter Smith Petroleum Oil Limited; OML 13 Uquo, Frontier Oil Limited; Universal Energy and Network Exploration and Production.

DPR listed some of the non-producing marginal fields to include Oil Mining Licences (OML) 54, Omerelu oil field operated by Niger Delta Petroleum Limited; Otakikpo OML 11, Green Energy International; Ubima OML 17, All Grace Energy; Okwok OML 67, Oriental Energy; Amoji OML 56, Chorus Energy; Ekeh OML 88, Mavido Exploration and Production; and Oriri OML 88, Goland Petroleum.

Others are Ke OML 54, Del Sigma Limited; Dawes Island OML 54, Eurafric Energy; Ogedeh OML 90, Bicta Energy System; Akepo OML 90, Sogenal Limited; Ororo OML 95, Guarantee Petroleum; and Asaramatoru OML 11, Prime Energy Limited.

The discovery of one of the non-producing fields, Okwok, was made by a joint venture between NNPC and Mobil Producing Nigeria, a subsidiary of ExxonMobil.

According to the latest estimates, Okwok contains more than 70 million barrels of recoverable oil reserves. The stock tank oil initially in place (STOIIP) is estimated to be 225 million barrels of oil.

Akepo Field (OML 90’s) total proven reserves are estimated at 81 million barrels. The probable reserves are estimated at 410 million barrels and possible reserves at 1.243 billion barrels.

Asaramatoru marginal field is an onshore field in Rivers State with Shell/NNPC and JV partners as leaseholder. The field is estimated to contain a recoverable reserve of 28 mbbl of oil and 2.7 bscf of associated gas. Stubb Creek field is estimated to contain 20 mmbbl oil and 450 bscf of gas (proven and probable reserves). Ekeh oil field owned by Movido Exploration and Production has a reserve base of 25 million barrels and is yet to take off.

Also, Otakikpo marginal oil field operated by Green Energy International has an estimated 56.75 million barrels of oil (mmbbl)

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