Over 30 Oil Blocks Under Concession to IOCs, Others– NNPCL
No less than 36 oil blocks are under concession to worldwide oil business running in Nigeria and their native equivalents in the nation, newest information from the Nigerian National Petroleum Company Limited revealed.
An analysis of NNPCL’s brand-new Consolidated and Separate Financial Statements for the 16-Month Period Ended December 31, 2022, showed that the blocks lie in deepwater (8), continental rack (5), land (15 ), overload (5) and partly overload (3) surfaces.
The blocks are categorized into Oil Prospecting Licence and Oil Mining Licence. An OPL is given by the federal government to a candidate business signed up for expedition and production functions, while an OML is given upon verification of capacity for business production of petroleum from the licence.
The nationwide oil business’s monetary declarations detailed the blocks on concession to consist of OPLs 244, 242, 214, 223, 251 and 325. For the Oil Mining Licences, they consist of OMLs 154, 139, 119, 60-63, 111, 148, 65, 26, 28 and 30.
Others consist of OMLs 34, 64, 66, 4, 11, 13, 24, 98, 38, 49, 41, 40, 86, 88, 42, 20 and 51.
On the status of the blocks, the report revealed that oil expedition was continuous on 9 of the blocks, it categorized 20 of the blocks as producing, while 3 fell under the advancement classification. A few of the blocks had their status combined.
NNPC Exploration and Production Limited, a subsidiary of NNPCL group, recorded as NEPL in the report, owns 100 percent interest in 9 of the blocks consisting of OPL 242, and OMLs 119, 111, 65, 34, 64, 4, 11 and 24.
The nationwide oil business, through NEPL, likewise manages various levels of interests in other oil blocks, according to figures in its most current combined monetary declarations.
It called the operating celebrations dealing with the concessions in the business plan to consist of Agip, ExxonMobil, Mobil, Ashbert, NEPL, AshbertiNNPC, NAOC (Nigeria Agip Oil Company), Enageed, Seplat and Newcross.
Other partners in the offer consist of Chevron, Oando, Vescar, SO, Nesten, ESSO, TEPNG, Nexen, FHN, Shoreline JV, SPDC, ND Western and Neconde.
The report kept in mind that “the (NNPCL) Group runs OMLs 11(Aroh field) and 20 (NNPC/Shell JV) and OMLs 49 & & 51 (NNPC/Chevron JV) as a representative of the JV partners, These properties are run for capability structure as the Group is not compensated for its operatorship.”
NNPCL as a group remains in business of prospecting, expedition and production of petroleum and gas through different completely owned possessions, joint endeavor plans and production sharing agreements with other business in the market.
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It specified that all the concessions were within Nigeria, including that “in the Production Sharing Contracts and Joint Venture plans, the partics money the expedition, advancement and production expenses.
“They are repaid in case of effective expedition by the allotment of petroleum produced from the fields under particular terms and the Group is entitled to in between 20 percent and 60 percent of the earnings accumulating from the operations. The Group understands its profits from the sale of the petroleum assigned to it.”
NNPCL, included in Nigeria on September 21, 2021 as a minimal liability business under the Companies and Allied Matters Act, as needed by the Petroleum Industry Act of 2021, is developed to take part in all industrial activities connecting to the petroleum market.
To provide credence to the concession of the blocks, the report mentioned that the nationwide oil business was charged under Section 64 of the PIA to “perform petroleum operations on an industrial basis, equivalent to personal business in Nigeria performing comparable activities.
“Concessionaire of all Production Sharing Contracts, Profit Sharing and Risks Service Contracts as the nationwide oil business on behalf of the federation. Raise and offer royalty oil and tax oil on behalf of the Nigerian Upstream Petroleum Regulatory Commission and Federal Inland Revenue Service respectively for a predetermined industrial charge.”
It even more mentioned that the business had the required to “perform the management of PSCs for a cost based upon the earnings oil and revenue gas raised and offered. Perform test marketing to determine the worth of unrefined ofl and report to the commission.
“Assume the working interest of NNPC (corporation) in regard of any Joint Operating Agreement it was celebration to. Take part in business of renewables and other energy financial investments.”
The combined declarations specified that the company was likewise credited promote the domestic usage of gas through advancement and operation of massive gas utilisation markets.
It has the required to take part in activities that make sure nationwide energy security in an effective way in the total interest of the federation, including that the company would “work as a provider of last option for security factors and all expense will be for the account of the federation.”
Discussing the concession of the blocks, an economic expert and previous National President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, specified that the nationwide oil business need to utilize the profits from the offers for the interest of Nigerians.
“The law enables them to perform such concessions on behalf of the Federal Government. The issue is whether the profits from the offers are being utilized for the advantage of the bigger masses, or whether it is cornered by couple of individuals,” he mentioned.