Oil Production From Marginal Field Begins 2022 – DPR

Oil Price Hits $70 As OPEC+ Meets
Oil Price Hits $70 As OPEC+ Meets

The Department of Petroleum Resources (DPR) on Wednesday said the oil production from the 57 marginal oilfields that have been awarded licenses will commence in January 2022.

This was made known by the DPR Director, Sarki Auwalu, who spoke during a strategic engagement session with the Nigeria Extractive Industry Transparency Initiative (NEITI) in Lagos.

He described marginal fields as smaller oil blocks typically developed by indigenous companies.

Auwalu said the 2020 marginal oilfield bid round was almost at the completion stage, adding that successful companies had started paying their signature bonuses.

He reiterated that oil production from the marginal oilfield would increase Nigeria’s oil and gas production capacity and boost revenue for national development.

Auwalu said the bid round, which began on June 1, 2020 was aimed at deepening the participation of indigenous companies in the upstream segment of the industry.

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He added that between January and March, the agency generated about N452 billion for the Federal Government.

He estimated that the DPR would earn additional N900 billion in the second quarter of the year.

According to him, the DPR operates a cashless revenue system that enables all revenue remittances to be paid to the Federation Account in compliance with the Treasury Single Account (TSA) policy of the government.

Auwalu noted that transparency and accountability were critical to sustaining the industry and assured NEITI of the DPR’s support towards its mandate.

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