FG tar­gets N939bn from oil block li­cences re­newal

The Punch - - FRONT PAGE - ’Femi Asu

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.

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.

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.

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