Director, First E&P, Dr Emmanuel Enu, has said that owners of dormant marginal oil fields require between $40million and $70million to become productive.
Enu, who spoke in Lagos said the sector awaits the March timeline given by the Federal Government to owners of oil blocks to either develop or lose them, adding that such fields had been inactive for years.
He said: “Given the fact that the fields were unused for over 30 years, they must have suffered infrastructural degradation. Based on this, owners or allottees of such fields would spend between $40million and $70million on infrastructure to bring them back to life in view of the fact that Federal Government has said it would revoke the licence of any operator that fails to develop his sites by March this year.
“There is need to carry out ecological studies, drilling services, provide the necessary machinery, employ people, explore oil, among others, on the fields. Exploration is not a one-off thing. It must be continuous. When you add up the cost, you would discover that operators of such fields would spend at least $70million to record a reasonable level of productivity. But that is subject to the volume of oil in the field or sites. The oil contents in the marginal oil fields differed. ‘’
He, however, added that to achieve productivity, operators need to first source for money, bring in technology and source for strategist to map out development routes for results.