Page 13 - AfrOil Week 41

AfrOil PERFORMANCE AfrOil

“It is not easy for us to go back to the previous new blocks in its upcoming licensing round, he
[average of] 300,000 bpd,” he said. “We cannot explained.
do that because of the geological challenges, and DPOC is developing two licence areas in
at the same time, we understand there is national the Melut Basin known as Block 3 and Block 7.
decline because the [country’s] oil reserves are Equity in the consortium is split between oper-
limited.” ator China National Petroleum Corp. (CNPC)
As such, he said, South Sudan is looking with 41%; and its partners Petronas (Malaysia)
for ways to expand its crude reserves with the with 40%; Nilepet (South Sudan, state-owned)
help of outside investors. For example, the gov- with 8%; Sinopec (China) with 6%; and Tri-
ernment is set to offer exploration rights to 14 Ocean Energy (Egypt) with 5%. ™

POLICY
NNPC to cede frontier exploration

work to new upstream agency

NIGERIA NEW details have emerged about Abuja’s plan Services must take the lead on this front.
to establish the Nigerian Upstream Regulatory Plans for the transfer of responsibility for this
Commission (NURC) as one of the new state function are spelled out in Section 9 of the pro-
agencies that will replace the national oil com- posed oil and gas law, Africa Oil + Gas Report
pany (NOC), Nigerian National Petroleum said. It stated that Section 9 called for NURC to
Corp. (NNPC). promote exploration work in Nigeria’s frontier
According to previous reports, the Nige- oil and gas provinces, to develop exploration
rian government has said it intends to divide and portfolio management strategies for work
NNPC’s responsibilities among three entities at unassigned fields within frontier provinces,
– namely, NURC, the Nigerian Midstream and to identify investment opportunities in and dis-
Downstream Petroleum Regulatory Authority seminate information about these basins and to
(NMDPRA) and a state-controlled commercial study, analyse and evaluate the basins.
entity that will be known as Nigerian National Additionally, Section 9 outlines plans for the
Petroleum Co. Ltd (NNPC Ltd). It has spelled establishment of the Frontier Exploration Fund
out its plans in the Petroleum Industry Bill to facilitate these endeavours. It calls for NURC
(PIB), which is currently under discussion in to manage the fund and to deposit 10% of rents
both chambers of Nigeria’s National Assembly. from petroleum prospecting licences and petro-
This legislation, which is designed to replace leum mining leases in the fund in order to cover
Nigeria’s existing legal regime for oil and gas, its expenses. ™
tasks NURC with the technical and commercial
regulation of upstream oil and gas operations.
It also makes the commission responsible for
ensuring compliance with all relevant laws and
regulations covering upstream activities, with
optimising government revenues from oil and
gas projects and with minimising waste.
Earlier this week, Africa Oil + Gas Report
said that the PIB also provided for NURC to
assume the task of overseeing exploration work
in frontier hydrocarbon basins. Under current
laws, NNPC’s subsidiary Frontier Exploration NURC will oversee frontier exploration (File Photo)

NNPC extends oil-for-fuels scheme

NIGERIA NIGERIA’S state-owned NNPC will continue its The country, Africa’s biggest oil producer,
crude oil-for-products swap programme until relies heavily on fuel imports, as its main domes-
2023, its managing director Mele Kyari told a tic refineries are in a state of disrepair and have
conference on October 6. been closed down.

Week 41 14•October•2020 www. NEWSBASE .com P13