FG targets N939bn from oil block licences renewal

0 74

The Federal Government is looking to earn a total of N939bn from the renewal of oil blocks by operators in the nation’s oil and gas industry next year.

The revenue from signature bonuses, renewals and early renewals would account for 11.2 per cent of total revenue expected by the Federal Government.

- Advertisement -

The aggregate revenue available to fund the 2020 budget is projected at N8.42tn, according to the breakdown of the approved 2020 budget presented by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.

“In aggregate, 44 per cent of projected revenue is to come from oil-related sources while 56 per cent is to be earned from non-oil sources,” she added.

The oil block licences that will be due for renewal next year are Oil Mining Lease 119 and Oil Prospecting Licences 305, 306, 215 and 241, according to data obtained from the Department of Petroleum Resources.

The OML 119 is being operated by the Nigerian Petroleum Development Company, a subsidiary of the Nigerian National Petroleum Corporation; the OPLs 305 and 306 by Crownwell Petroleum Limited; the OPL 215 by Noreast Petroleum Nigeria Limited; and the OPL 241 by Oilworld Limited.

The OMLs 120, 121 and 122, as well as the OPLs 245 and 1789 will expire in 2021.

- Advertisement -

The OMLs 120 and 121 are operated by Allied Energy Resources Limited while Peak Petroleum Industries Nigeria Limited is the operator of the OML 122.

The Nigerian Agip Exploration Limited and Shell Nigeria Ultra Deepwater serve as the operators of the OPL 245, while the OPL 1789 is operated by Oranto Petroleum Limited.

The OPL 245, better known as Malabu oil block, is one of the biggest sources of untapped oil reserves on the African continent with reserves estimated at nine billion barrels.

Two oil majors, Shell and Eni, are embroiled in a long-running corruption case revolving around the purchase of the oilfield in 2011.

Shell and Italy’s Eni bought the OPL 245 offshore field for about $1.3bn in a deal that spawned one of the industry’s largest corruption scandals. It is alleged that about $1.1bn of the total sum was siphoned to agents and middlemen.

- Advertisement -

Get real time updates directly on you device, subscribe now.