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However, DPRs recent pronouncements on the issue that Nigerians own 80 oil bocks where
foreigners had 83 have nullified every other previous pronouncements on the controversial oil
blocks ownership, including the list of 77 oil blocks and their owners recently published by
one of the dailies.
Analysts are of the view that to end the controversy, the DPR should go a step further to
publish the full list of the 173 oil blocks so far awarded, indicating who owned what, whether
local or foreign.
Poor indigenous output contribution
Notwithstanding the fact that Nigerians owned the larger share of the nations oil assets, their
contributions to total production as revealed by the DPR is abysmally poor.
According to data provided by the regulator, Nigerians are producing about 150,000 barrels
of crude oil per day, representing six per cent of the Nigerias total crude production; while
foreign oil companies account for the bulk of 2.35 million bpd or 94 per cent of total output.
He blamed this on the lackadaisical attitude of the Nigerian players towards the development
of their blocks. He said that majority of them have not commenced any serious production
activities on the oil blocks since they were awarded to them.
He said, It appears that people just want to own oil blocks and put it on their complimentary
cards. We are not happy with that. It is absurd that six per cent of oil production is coming
out of 90 leases.
Government decided to dig deeper as it was not so happy with the performance of the
indigenous oil companies. That is the reason why government put in place the Marginal
Fields policy, he noted.
He disclosed that about 24 marginal fields were allocated in 2003, and only six fields are
doing well, while the rest have refused to develop theirs, adding that many are faced with
litigations, funding constraints, non-bankable proposals, and a host of others issues.
He said, The major issue that negatively affected the production capacity of majority of the
marginal field owners is the fact that the owners could not access funds. As at 2003, when the
fields were awarded, Nigerian banks where in difficult situation, making it impossible for
majority of them to give out loans.
Also, another challenge that served as a drawback to the marginal fields programme is the
unending litigations by most of the parties the fields were awarded to. The bid rounds brought
a lot of litigations, due to the fact that the parties were technically asked to merge before the
fields will be awarded to them. Till today, majority of them are still in court and are yet to
kick start the process of production on their fields.
The active and producing marginal fields are:
Asuokpu/Umutu field owned by Platform Petroleum
Ibigwe field by Walter Smith and Morris Petroleum