OrderPaperToday – The House of Representatives has resolved to investigate the process and financial proceeds of licensing for Nigerian oil fields.
The decision to investigate the matter follows a motion raised by Diri Douye (PDP, Bayelsa) on Thursday.
While presenting his case, Douye noted that over 30 oil fields have been given out to 40 Marginal Field Operators, and most remain undeveloped due to technical, financial, environmental and political issues.
Additionally, he noted that the Department of Petroleum Resources (DPR) failed to revoke licenses for undeveloped fields, compounding their problems.
“The Department of Petroleum Resources (DPR) had, in 2014, stated that marginal oil fields licenses awarded to indigenous companies in 2003, one year after, the DPR is yet to carry out the planned revocations of licences of under developed Marginal Oil Fields,” he said.
Douye disclosed that the situation is “impeding the actualization of the nation’s plan to earn additional N14billion from 300million barrels of crude and gas.”
The lawmaker therefore warned that the current method of licensing and bidding lacks transparency and this contravenes the provisions of the Nigerian Oil and Gas Local Content and Freedom of Information Act.
As a result of this, the House resolved to allow the ad hoc committee currently investigating the debt owed by International Oil Companies investigate the matter.
Finally, the committee will also investigate the strategic alliance agreement between IOCs, Investors and the Nigerian Petroleum Development Company in the operation of marginal oil fields.