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FG to revoke most Marginal Oil Field Licenses issued in 2021

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Heineken Lokpobiri

The Federal Government has hinted of plans to cancel most of the licenses granted to marginal oil field operators in 2023 which have remained non-operational.

This is coming over 30 months after the government completed the acquisition process of these marginal fields and the subsequent notification of the winners.

According to Bloomberg, this was made known by Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, while speaking at the Nigeria Economic Summit currently going on in Abuja.

Lokpobiri said that out of the about 100 licenses that were granted in 2021, only 3 of them are operational, adding that the Federal government will revoke these permits once the 3-year deadline for them to operate expires.

This is not the first the government is cancelling such permits as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had in January 2022, revoked marginal oil field awarded to 33 companies for failing to meet the 45 days deadline required to pay the signature bonus for the fields.

Lokpobiri announced that the government plans to hold another oil-bidding round soon.

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