The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says it is planning a production based lending engagement to assist the 2020 marginal field awardees in field development.
In a statement on Tuesday, Gbenga Komolafe, NUPRC’s chief executive, said the initiative would help the awardees to commence full field development toward hitting first oil.
Komolafe added that the initiative would be between the commission and the 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,” he said.
“The arrangement is to be offered on service fee recoverable by the service providers from production to be attached.”
The chief executive included that 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 commercialisation programme, as well as the on-going mini-bid awards.
“The framework is currently at an advanced stage of internal review and stakeholders engagements required for its finalisation,” he added.
“This is to enhance sustainability, environmental and corporate governance requirements and to facilitate capital attraction by investors for the optimal and efficient development of the PPLs and other assets.
“To facilitate dynamic data gathering and accelerate the achievement of ‘first oil’, the commission initiated the revision of the subsisting Extended Well Test (EWT) guideline to enhance early cash flow and speed up the journey to first oil.
“The strategy has already yielded positive results with 16 companies submitting Field Development Plan (FDP), two already commencing unitisation processes, six re-entries and two having gone through the EWT.”
The commission had in June last year, handed over 57 oil fields located onshore and swamps of the Niger Delta to local oil companies with a charge on them to quickly develop the fields and produce first oil.
Matrix Energy, Ardova Oil, Suntrust Oil, Energia Ltd and Mainland Oil were among the companies awarded the Petroleum Prospecting Licence, PPL, and given at most six years to develop the fields and produce first oil.
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