The government is planning to bring back production at the Zabazaba oil field, and it’s all part of a big initiative to develop the oil-rich field for the benefit of Nigerians. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that they are taking steps to address all legal matters related to the Zabazaba oil field. The aim is to resolve these issues and move forward with the conversion process, turning the oil prospecting license into a mining lease for commercial oil development and production. If all goes as planned, the Zabazaba field could contribute 150,000 barrels of oil per day, which would be a big boost for Nigeria’s overall oil production.
The Backstory
Back in 1998, Malabu Oil and Gas got an Oil Prospecting Lease for Oil Block 245 but only paid $2 million of the expected $20 million. This led to some complications, and legal battles ensued. Fast forward to 2020, a UK court rejected a $1.1 billion case against Shell and Eni over bribery allegations. There are ongoing cases that suggest the potential involvement of high-profile Nigerian officials, and Italian prosecutors have sought convictions for ENI executives in the OPL-245 license bribery case.
What you should know
In a statement sent to Nairametrics in September 2023, the Federal Government indicated that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had engaged with fifteen leading international and independent Oil and Gas Companies operating in Nigeria, including Nigeria Agip Oil Company Limited (NAOC). These talks have led to significant investment opportunities, with an estimated $55.2 billion in investments projected by 2030, of which $13.5 billion is expected to be invested by these companies within a couple of months. During these consultations, the operators shared insights into the challenges and barriers affecting their investment strategies and the swift rollout of planned projects. They also highlighted the key enablers required to ensure the delivery of 2.1 million barrels by December 2024, positioning Nigeria well ahead of President Tinubu’s campaign promise of 2.6 million barrels by 2027.