DPR Acknowledges Midwestern As A Frontline Marginal Field Operator

Midwestern Oil and Gas production activities from its Umusadege field has been described as crucial and a significant development for the industry in Nigeria.

The Director, DPR, Mr. George Osahon stated this in Lagos recently at the Society of Petroleum Engineers' 37th Nigerian Annual International Conference and Exhibition. He said crude oil production from the nation's marginal fields had reached 60,000 barrels per day. Of this production figure, Midwestern accounts for about 32% of marginal capacity.

Osahon, who was represented by the Deputy Director, Upstream Division, DPR, Mr. Samuel Obiora, described as little the 2.1 per cent contribution of the marginal fields to the country's total crude oil production.

He said the amended Petroleum Decree of 1996 made it possible for indigenous companies to own and manage onshore and shallow water leases originally held by the International oil Companies.

The Programme, he said, was aimed at promoting indigenous participation and building indigenous capacity through acceleration of development of discovered reserves: and increase the oil and gas reserves base through aggressive exploration, among others.

He, however, lamented that only nine of the 24 marginal fields awarded in2003 and five discretionarily awarded later had started production.

According to him, the producing fields are Umusadege (Midwestern Oil & Gas), Umusati (Pillar Oil), Ibigwe (Waltersmith), Egboma (Platform Petroleum), Obodugwa/Obodeti (Energia Petroleum/Oando), Ajapa (Britania-u), Ogbelle (Niger Delta), Ebok (Oriental Energy) and Uquo (Frontier).

Osahon said though the marginal field programme had not evolved as intended, the programme had made its mark on the industry landscape. "The challenges have been adequately analysed and remedial legislation and actions are being proposed. Identified enablers will be applied in the next marginal field bid round," the DPR boss said.