July 27, 2018.
Equally the agency renewed 19 expired oil leases for same year.
These were contained in a document of DPR which also reflected issueance of 10 gas production licenses that generated N747, 614,888,823.04 revenues in the year under review.
The approval of the 16 new fields was projected to increase Nigeria’s oil and gas production by 560,463 barrels per day when fully commissioned.
To enhance upstream investment influx and accelerate oil and gas reserves and production growth in the country, the document revealed that DPR renewed 19 expired leases in 2017.
Earlier in July, the Department had joined issues with the Senate when the latter accused it of not following due processes in renewal of oil and gas prospecting licenses in the country.
DPR initiated early lease renewal programme to accelerate revenue generation for the government to fund national budget and incentivise upstream investments by ensuring security of tenure given to long gestation and payback period of oil and gas investments.
The process was part of the Accelerated Revenue Generation Initiative of the Honourable Minister of State for Petroleum Resources and the DPR.
According to the DPR about 51 Oil Prospecting Licences (OPL) and Oil Mining Lease (OML) of different oil blocs have expired between 2010 and March 2017, threatening about $2 billion (N720 billion) in signature bonuses.
Another 85 OPL and OML will expire between April 2017 and 2029, according to the document.
The DPR posited that: “We have so far processed the renewal of about 25 blocs, which have combined revenue stream of about $1 billion.”
47 oil block licenses were expected to expire before the end of 2019 alone.
The other license, OML, is granted to holder of OPL to commence production after discovery of crude oil in commercial quantity of at least 10,000 barrels per day.
The duration of the license is for 10 years with option of renewal for another 10 years.