Oil Block: TERL Urges Indigenous Participation


The Managing Director of Treasure Energy Resources Limited (TERL), Dr Eddie Wikina, has advocated the consideration of indigenous companies in the East of the country in the next round of the oil block sale in the country.

Wikina who spoke with The Tide in an interview in Port Harcourt, expressed with optimism that the just-concluded sale of two oil blocks located at Oil Mining Leases (OMLs) 26 and 42 in Abuja would be replicated in the Eastern part of the country.

He argued that indigenous companies like TERL stand a better position to touch the lives of the people more than International Oil Companies (IOCs).

According to him, “if indigenous companies are considered in the sale of oil blocks, it will give them the opportunity to employ more youths but IOCs will not give such consideration to indigenes.

He stressed that in the spirit of local content policy, indigenous companies should be given priority when bidding for oil blocks.

It would be recalled that the Nigerian National Petroleum Corporation (NNPC) and Shell Petroleum Development Company (SPDC) joint venture just completed a sale deal on the blocks located at OMLs 26 and 42 in Abuja recently.

A subsidiary of Afren, First Hydrocarbon Nigeria (FHN) bought the 45 per cent owned by Shell in the shareholding in OML 26 while, Neconde Energy, a consortium of Nigeria’s Nestoil, Aries and VP Global and Poland’s Kulczk Oil Ventures bought Shell’s 45 per cent stake in OML 42.

NNPC, which holds 55 per cent shares in the oil blocks transferred its shares to its exploration and production subsidiary –Nigerian Petroleum Development Company (NPDC).

In the NNPC/Shell joint venture oil blocks, Total owns 10 per cent stake, Nigerian Agip Oil Company (NAOC) owns five while NNPC and Shell JV have 55 per cent and 30 per cent stakes respectively.

Vivian-Peace Nwinaene