June 27, (THEWILL) – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the Federal Government will issue Petroleum Prospecting Licences (PPL) on Tuesday to companies that won rights to develop marginal oilfields.
This is coming two years after the authorities requested bids for oil blocks.
Marginal fields are smaller oil blocks located onshore and in shallow waters. They are typically developed by local companies.
A statement by the Head of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said that issuing licences was one of the most critical tasks for the agency, which was established last year after Nigeria passed a new petroleum law.
Nigeria, Africa’s biggest oil producer, and exporter wants to boost production from the fields to bolster state finances and increase local participation in the oil sector, which provides the bulk of the country’s foreign exchange.
While local companies have become increasingly important to the industry, it remains dominated by international oil majors that are selling onshore assets to concentrate on deep-water drilling.
