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We 'll not revoke license of non-performing oil blocs-DPR

By The Citizen
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The Department of Petroleum Resources(DPR),says   it awarded  77 oil acreages  to several  companies in the country between 2005 and 2007 .

Only one of the blocs  is  currently on production,while  less than 30percent of oil blocks are actively worked,according to its Director,Greorge Osahon.

He spoke Thursday at a one day forum on the 2005-2007 licensing round  and expressed regret over the development.

According to him, several Production Sharing Contract are   yet to be signed while bank guarantees are yet to be put in place as a result of the development.

He stated his agency is currently at crossroad over order concessionaire,while downstream obligations are not performed

Osahon explained that the non-performance of the oil blocs is attributed to the insecurity in the Niger Delta,lack of adequate,technical challenges and data availability .

Osahon disclosed that his agency would not revoke the licenses of companies whose oil blocks are currently dormant  and said the concern of the Department of Petroleum Resources revolves round modality   to activate the dormant blocs with a view to enabling the country meets 40millionbarrel per day production and  40billion oil reserves.

He  said starting  from next month companies whose oil bloc is dormant should avail the DPR with the challenges experienced therein in order to see how the DPR can help bring life to the oil bloc.

Expressing hope in the capacity of the nation's oil and gas industry to grow and suggested that there should be a relationship between prospective investors and financial institutions in the country.

He also suggested the need to build synergy where possible in a contiguous blocks.

Speaking,Managing Director,Oando Exploration and Production Limited,Mr.  Pade Durotoye,said the 2005-2007 award of acreages is a watershed in the history of the country in the sense it is transparent,witnessed strong participation of indigenous companies and fetched Federal government more revenue.

Pade ,who said his company's OPL 278 is challenged due to insecurity in the Niger Delta which made it difficult to situate seismic data,craved the need for the Federal government  to give unique consideration to indigenous oil companies in exploration angle

Speaking,Executive Secretary of NEITI,Hajiya Zainab Ahmed,expressed concern over leakage in the nation's oil and gas sector.

Zainab,who was represented at the event by the agency's Team Leader,Outreach,Mrs Onuorah Obiageli,charged the Department of Petroleum Resources to  publicize  contracts and licenses for oil and gas operations in the country.