Following the award of the Dawes Island Marginal Field to Petralon 54 Ltd in 2021, the
Federal Government of Nigeria has granted the company Petroleum Prospecting
License No. 259 (PPL 259) in accordance with the Petroleum Industry Act (PIA), 2021.
The granting of licenses to marginal field awardees by the Federal Government of
Nigeria complies with section 94 of the Petroleum Industry Act, 2021, which stipulates
the framework for the license structure of Upstream Oil and Gas Assets previously
designated as ‘Marginal Fields’ before January 1 st , 2021.
By this action, Petralon 54 holds 100% participating interest in PPL 259 and becomes
the sole operator of the asset, which covers the Dawes Island Field.
The license was presented to Petralon 54 during a ceremony held at the Transcorp
Hilton Hotel in Abuja on 28 June 2022. Organized by the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) for the official unveiling of the Model PPL Contracts
and the Upstream Petroleum Host Communities Development Template and
Regulations, The ceremony had in attendance the Minister of State for Petroleum
Resources, Chief Timipre Sylva, NUPRC Chief Executive, Engr. Gbenga Komolafe and
Chairman, Senate Committee on Upstream Petroleum Resources, Senator Bassey
Albert.
Accordingly, the management of Petralon 54 Ltd has outlined an action plan towards
maximizing the company’s operation and contribution to Nigeria’s oil production
capacity that has suffered significant setbacks in the current year.
Adeola Akinrinmade, Executive Director of Petralon 54, commented:
“With the conclusion of the license award, Petralon 54 immediately started the process
of investing significant capital on the Dawes Island Field and will strengthen its
investment over the next couple of months with the overriding objective of taking the
asset to sustained commercial production before the end of the year 2022.
In addition to direct investments in the asset, Petralon 54 will also be making a material
investment in its host and impacted communities, which aligns with our corporate
philosophy of ensuring a strong and mutually beneficial relationship with our
communities.”
“We take the Federal Government of Nigeria’s aspiration of encouraging investment in
the development of upstream assets as a call for partnership towards building a more
viable energy sector,” added Adeola Akinrinmade.