Tinubu greenlights new bid round for abandoned Oil and Gas fields

President Bola Tinubu has given the go-ahead for the sale of additional oil and gas fields that have been abandoned by international oil companies (IOCs). The decision includes conducting a fresh marginal field bid for gas fields that have remained dormant for over a decade.

Senator Heineken Lokpobiri, the Minister of State for Petroleum (Oil), revealed this development during a facility tour of Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State.

Lokpobiri announced that the bidding exercise for the gas fields would commence “soon.” This new bid round follows the offering of about 57 marginal oil fields for sale in 2020, a process that concluded last year. However, many awardees faced challenges in moving to site for development due to funding and regulatory issues.

In a statement issued by the Nigerian Content Development and Monitoring Board (NCDMB), the minister shared that he obtained presidential approval for the fresh bidding round, emphasizing the prioritization of marginal fields based on their proximity to entities with modular refineries.

Lokpobiri stated, “Marginal fields would (henceforth) be prioritized in terms of their location to those who have modular refineries so that they will be able to produce.”

The marginal field exercise is exclusively reserved for Nigerian companies, aligning with the government’s policy to actively involve local firms in the country’s oil and gas exploration and production sector. The minister highlighted modular refineries as a quick solution to address the country’s energy challenges while awaiting the total rehabilitation of larger refineries.