June 21, 2024

Marginal Field: Matrix Energy E&P expresses confidence in hitting first oil after PPL licence issuance

Oredola Adeola

The Matrix Energy Exploration and Production Company Ltd., has expressed confidence in its potential to hit the first oil before others, as there are speculations that the company may bring Vitol Trading Company on board with funding support through product pre-sale arrangement.

Mr Abdulkabir Aliu, the Group Managing Director of the company gave this hint on Wednesday in Abuja.
EnergyDay gathered that Matrix Energy, an indigenous oil and gas company is one of the 161 companies that were issued the Petroleum Prospecting Licences (PPLs) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday.

Matrix Energy, along with its partners were awarded two licenses to explore and develop the Atamba oil field located in Oil Mining Lease (OML) 42 and Igbomotoru oil field in OML 33 in the Niger Delta region. OML 33 is described as a  modest block but located in the remote swamps of the southern Niger Delta region. It is one of Shell JV assets that has been on the shelf for prospective acquisition before now.

EnergyDay gathered from reliable sources that the asset  has three discoveries which remain undeveloped.

Wood Mackenzie in its report, observed that the operating conditions are difficult, as OML 33 is bisected by numerous large river channels,  with access only possible by helicopter or boat’.

The block is very gas prone but despite its potential, a development has never proceeded. Although there have been attempts to revoke OML 33 from Shell due to lack of investment, the exploration license expired about two years ago.

Matrix Energy from all indications, might be able to bring onboard Vitol Trading Company with funding support through product pre-sale arrangementAliu in his remark after the successful bid promised that his company would deploy its downstream experience into the upstream operations sector to boost Nigeria’s crude oil output.

According to him, Matrix is determined to optimise the opportunities that the bid round presents especially in the area of increasing the country.

He said with Matrix Energy as one of the companies that was privileged to be awarded two of the licenses to operate in the upstream, it would do its best to bring value to the assets as soon as possible to spur economic growth.

“We are aware that the upstream industry is more challenging. But we are also aware that there are a lot of opportunities to contribute to the growth and development of the industry, in particular and the country in general.

“As an oil producing country, it is best for the operators to ensure they take advantage of the current rising price of crude oil at the international market by ensuring the country meets its production quota at all times.

“For us in the Matrix Energy Group, we will do our best to ensure we contribute significantly to the national oil and gas output and reserve aspirations as well as the overall betterment of the country,” Aliu said.

The CEO expressed satisfaction with the outcome of the entire bid process right from its beginning in 2020, saying the latest exercise was much better than what happened in 2003 and showed the high level of interest among investors.

On Signature Bonus, he said the decision by the government to select companies that not only have the financial capacity, but also those that have distinguished themselves with their technical capacities in their respective industries, made all the difference.

He said the presentation of the company with the prospecting license marked the beginning of the journey to first oil.

“With three years given to the licensees to complete exploration work on the prospecting side of the license before going to mining and development, we will do our best to ensure we bring value to the license as soon as possible,” he said.

He further noted that his company is focused on deploying expertise, network and competences to get to first oil, having scaled the bidding and  licensing stages.
Aliu however banked on the support of the NUPRC in resolving host community and other related issues in the course of explorations.