#Country Updates #News #Nigeria #Upstream Exploration & Production

Revocation of 11 marginal fields’ licenses imperil $470m investment

Indications are that the revocation of eleven marginal oil field licenses by the Department of Petroleum Resources, DPR under the guise that the affected fields had been left fallow may have imperiled investments valued in excess of $470 million, exposing the operators to litigation both at home and abroad.

The affected oil fields and their operators include: Atala operated by Bayelsa Oil/CEPL; Dawes Island operated by Eurafric; Ofa operated by Independent Energy; Ke operated by Del-Sigma/Xenoil; Ororo operated by Guarantee/Owena; and Ekeh operated by Movido.

The other affected fields and their operators are Akjepo operated by Sogenal;, Tsekelewu operated by Sahara/Africa Oil; Tom Shot Bank operated by Associated/Dansaki; Oriri operated by Goland and Ogedeh operated by Bicta.

In a letter to President Muhammadu Buhari these operators pointed out that the issuance of the instant revocation letters jeopardises the investment of several State Governments, Nigerian entrepreneurs and their foreign technical partners, and immediately creates additional Non-Performing Loans (NPLs) for the local banks.

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Source: SweetCrudeReports

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