Marginal field operators, whose fields have yet to start producing either oil or gas since they were awarded licences in 2003, are under increasing pressure from the plunge in oil prices and may lose their licences next month, industry analysts have said, Punch reports.
The Department of Petroleum Resources, which regulates the oil and gas industry, had recently said it would revoke the licences of non-performing marginal fields in March this year.
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It said it would review a number of criteria for non-performance of assets, including but not limited to proposing a field development plan and access to funding.
A marginal field is any oil and gas field in which available reserves do not make it commercially viable for the holders of Oil Mining Leases, typically the International Oil Companies to develop. Such fields are located within existing OMLs operated by the IOCs and are left dormant for a considerable amount of time.
Read more at Punch
- News 24