In monetary terms, changes in marginal fields’ ownership in the oil and gas industry were worth about $584 million in 2019, the latest report on the sector by the Nigeria Extractive Industries Transparency Initiative has indicated. The report showed that the changes were mainly due to internal reorganisation by asset owners, inability to pay outstanding debts owed to government, and non-development of oil assets, leading to revocation of licences.
While 7 Energy transferred 62.5 per cent shares of 51 per cent equity in Stub Creek Universal Energy Resources in a transaction worth $3.682 million, it also moved 100 per cent ownership of its shares in Uquo marginal field to Savannah Petroleum Plc in a $10.586 million deal. Eroton E&P also assigned 16.2 per cent and 1.8 per cent of Sahara field and Bolton in a deal worth $6.901 million.
During the year under review, seismic data acquisition was up by 348 per cent, field development plans 65 per cent, well activities 45 per cent, while gas development plan was down by 75 per cent, with six approved for 2019, as opposed to 24 in 2018. According to the report, in 2019, 43 companies emerged buyers of Nigeria’s federation export crude oil, compared to 41 in 2018, with 20 of the entities accounting for 73 per cent of total sales while the rest 23 accounted for 27 per cent.
Non-mandatory social expenditure is voluntary payment for or to the host communities and other commitments across the country. They include provision of social amenities, like roads, boreholes, health centres, etc.
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