Page 11 - AfrOil Week 28 2020

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Nigeria hails strong interest in marginal field offering
NIGERIA
NIGERIA’S Department of Petroleum Resources (DPR) has revealed that over 600 companies have taken part in a prequalifying round for rights to 57 marginal oil elds.
Abuja launched the contest in early June for the elds – discoveries that have not been developed either due to their small size, lack of economic viability or a lack of infrastructure in the area.
Nigerian authorities have pushed back plans for a full-scale licensing round because of the current coronavirus (COVID-19)-in- duced global economic crisis, which will make attracting foreign investors more di cult. But they have moved ahead with the marginal eld o ering, in the hope that local investors will step forward.
e last marginal elds competition was held back in 2003, resulting in 24 licence awards. But winners were largely unable to progress these discoveries to production. Attempts to hold two more marginal elds rounds in 2013 and 2017 failed.
Speaking on local television, DPR director Auwalu Sarki said that latest tender had attracted widespread interest, thanks to new measures put in place by the agency. Besides e orts to increase transparency, DRP said in late June it had also made changes to the way marginal elds are allocated to avoid legal problems that dogged the 2003 round and hampered development.
Sarki said the 10-to-1 ratio between par- ticipants and elds was cause for celebration. He added that there had been a 30% increase in applications owing to the DPR’s decision to extend the deadline until June 21.
“We are moving according to schedule and now we are in the phase where we do pre-quali - cation for the bidders to apply,” the director said.
“Everything is going perfectly.”
One company that has con rmed its partic-
ipation is Seplat Petroleum Development. In recent interview with local news, Seplat CEO Bryant Orjiako said the company was contin- uing with its long-running acquisition drive, despite present market conditions.
Modular re neries are seen as a potential solution for Nigeria’s marginal and stranded oil elds. Several of these small-scale processing plants have been built at marginal elds, and developers have called on the government to do more to encourage their construction. Modular re neries will help Nigeria cut its fuel imports and replace illegal plants working in the Niger Delta region.
In related news, the Nigerian government earlier this month signed an investment deal with a company called Duport Midstream on constructing an energy park in Egbokor, Edo State, that will feature a modular re nery. is plant will run on 2,500 barrels per day (bpd) of crude supplied from nearby marginal elds. ™
Abuja launched the marginal fields contest in early June (Image: PetroAfrique)
McDermott to provide services for Azikel modular oil refinery
NIGERIA MCDERMOTT International (US) has agreed to provide further assistance to Azikel Petro- leum, a subsidiary of Nigeria’s Azikel Group, on the construction of a new modular re nery in
Bayelsa State.
Earlier this week, Houston-based McDer- mott said in a statement that it had won a con- tract from Azikel Petroleum for engineering and procurement services related to the downstream project.
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