ADVERTISEMENT

Lagos Court Rulings Thwart Nigerian Oilfield Licensing Round

Source: Getty Images.

Judges in Lagos have blocked Nigeria’s efforts to revoke two oilfield licenses, potentially compromising a full licensing round for marginal fields—smaller oil blocks that are typically developed by local companies.

Nigeria had revoked prior licenses so these fields could the first marginal field round since 2002.

The Nigerian Department of Petroleum Resources had opened the 2020 Marginal Field Bid Round Exercise to companies and investors interested in participating in E&P business in the country.

The country hoped its participation in the licensing round would boost oil output and bring in much-needed revenues from fees associated with the licenses.

The Ororo field, OML 95, and the Dawes Island Marginal Oil Field, formerly called OML 54, were among 11 licenses revoked in April out of 57 fields located on land, swamp, and shallow offshore terrains. All 11 licenses could potentially be left out of the round.

Nigeria said last month it would delay major licensing rounds due to coronavirus disruptions, more than halving its projected revenue from signature bonuses to 350 billion naira ($972.22 million) from 939 billion naira originally expected. But it planned to accelerate the licensing rounds for marginal fields.

Lagos Court Rulings Thwart Nigerian Oilfield Licensing Round

Lynnmarie P. Flowers

02 June 2020

ADVERTISEMENT


STAY CONNECTED

Don't miss out on the latest technology delivered to your email weekly.  Sign up for the JPT newsletter.  If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.

 

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT