The DPR recently met with marginal fields operators to discuss areas of cooperation particularly as it relates to gas fiscal terms.
The Director of Petroleum Resources, who was represented by Mr. Alfred Ohiani, Head Planning explained that the purpose of the forum was to reiterate governments’ commitment to providing an enabling environment for investors in the oil and gas sector, particularly in marginal field operations, which was created for indigenous producers to boost local capacity.
He advised the operators to avail themselves of the opportunity of the forum to bring up issues affecting their operations as it relates to DPR’s regulatory oversight for clarity.
The Director advised them to ensure compliance with statutory royalty payment for oil and gas as this was an important source of government revenue.
The leader of the marginal field operators’ delegation Mr. Dada Thomas, Managing Director, frontier oil and gas Ltd, expressed the group’s appreciation to DPR for the engagement forum and stated that DPR had always provided appropriate communication channels to address their issues.
He however requested DPR’s assistance for clarity on the provisions in the marginal field operations gazette on gas royalty. He explained that the fiscal terms were not clearly stated. He further requested for government’s understanding on the issue of domestic gas sales royalty payment which the government collects in united states dollars. He said that the sales proceeds are received in local currency (naira) and that it is becoming increasingly difficult to remit domestic gas sales royalty payments in dollars.
The Director, advised that they should put up a proposal on these issues with all parameter inputs reflected for government’s consideration, since they bother on revenue matters.