Marginal fields are smaller oil blocks that are typically developed by indigenous companies. The new licensing round, launched last June, is the first marginal field round since 2002.
What is a marginal field?
Marginal fields refer to discoveries which have not been exploited for long, due to one or more of the following factors: Very small sizes of reserves/pool to the extent of not being economically viable. Lack of infrastructure in the vicinity and profitable consumers.
What is marginal field bid round?
Marginal fields are smaller oil blocks developed by indigenous companies. They are often discovered on an IOC-owned block where there has been no activity in at least the last 10 years. Over 600 companies had applied to be pre-qualified for the bid rounds of 57 marginal fields which began on June 1, 2020.
Which state has the highest oil well in Nigeria?
1. Akwa-Ibom. Akwa- Ibom is currently the largest oil producing state in Nigeria after displacing Rivers state from this position. It is located in the coastal area of Nigeria and is populated by over 5 million people according to the last census.
How many marginal oil fields are there in Nigeria?
The government in awarding these marginal fields to indigenous operators hoped to increase oil production by about 1 billion barrels. Some progress has been made in marginal fields’ development as 8 out of the 24 operators have taken their fields to first oil.
When was the last marginal field bid round in Nigeria?
The Department of Petroleum Resources (DPR) on Monday announced the commencement of the 2020 marginal field bid round. This bid round is coming 18 years after the last bid round in 2002 and is open to indigenous oil & gas companies and investors interested in participating in the exploration and production business in Nigeria.
Why are oil and gas companies not investing in Nigeria?
Furthermore, the recently passed Deep Offshore and Inland Basis Production Sharing Contracts (Amendment) Act (DOA) has made investments in Nigeria oil & gas assets less attractive. These negative regulatory sentiments has led to many IOCs decreasing investments in the Nigerian oil & gas industry.
What does it mean to develop a marginal oil field?
However, from an economic stand-point, a marginal field is one that can be developed with marginal profits regardless of the actual size of the oil field, and so require special field development planning and reservoir management strategies in order to yield acceptable returns on investment (ROI).
