Nigeria to get additional 1500bpd from HEPL’s Atala field

The hope of improved production from Nigeria’s marginal fields may become a reality as Halkin Exploration and Production Limited (HEPL) has announced plans to commence full exploration and production activities in the first quarter of 2023 from its Atala field.

At a media briefing to address issues bordering on the acquisition and operations of the Atala field, formerly OML 46 marginal field licence, the Director of Communications, Halkin, Osagie Amusa-Eke, said over $30 million has been invested so far in the facility, which can produce 1500 barrels per day by the time it starts full production early next year.

He also stated that plans are ongoing to drill more wells, calling on the Federal Government to give tax breaks for new companies in the oil and gas industry.

It would be recalled that from when the marginal field was won in 2003 until when it was revoked in April 2020, the field had not been in production for up to 100 days. Atala-1 was shut-in in June 2018 and remained shut in for about 650 days before the revocation.

Atala was plagued by constant disagreements between its previous licencees to the point that they were unable to get anything done. In a letter dated April 12, 2016, the defunct Department of Petroleum Resources (now Nigerian Upstream Petroleum Regulatory Commission), approved “the extension of Atala Marginal Field Concession” for BOCL. The licence was due to expire on April 30, 2018.

When the OML 46 licence was lawfully revoked by the Federal Government in 2020, notwithstanding having already wasted 17 years being unproductive, Bayelsa was again asked to reapply. New bidding was done sometime in 2020, but the state government failed to apply.

In line with Nigeria’s petroleum laws, Halkin Exploration and Production Limited was duly awarded the OML 46 to operate and develop. Halkin was awarded the licence on the condition that a signature bonus of millions of dollars was paid to the Federal Government. Also, there was the condition that Halkin must develop the field and bring it to full production.

According to Amusa-Eke, after over a year that the Atala Field’s licence was revoked by the NUPRC in line with Nigeria’s petroleum laws, Halkin legally applied and was duly awarded the OML 46 to operate, on the condition that the firm brings the field into full production where a signature bonus of over $8 million was paid to the Federal Government.

“As a responsible private company only interested in conducting legitimate business, it is really unfortunate that HEPL has found itself distracted by this situation. Today we seek to set the record straight with nothing but the truth and facts of the matter,” he added.

He said in 2003, the then Department of Petroleum Resources (DPR) issued 13 licences to indigenous oil firms but stressed that on the expiration of the deadline in 2018, the Atala Field had yet to come into full production.

“Following the failure to bring the field into full production the Atala Field licence was then revoked and returned to the basket as approved by His Excellency, President Muhammadu Buhari. Over a year after the licence was revoked by the NUPRC, Halkin legally applied and was duly awarded the OML 46 to operate, on the condition that Halkin will bring the field into full production. When there were petitions to Halkin being awarded the licence, Halkin was cleared by NUPRC after a thorough investigation of Halkin’s application process,” he said.

He pointed out that within a year of taking over the Atala field, it had invested millions of dollars into its operations in the field, with over 100 Nigerian personnel operating on site.

“Halkin has continuously engaged its host communities to foster a peaceful working relationship in its operating environment and concluded CSR projects like solar lighting initiatives for host communities with plans to do more projects. This is the reason why members of the host communities are delighted that Halkin is now in charge of the oil field,” he stated.

He noted that Halkin is committed to bringing the Atala Field to full production to increase the Federal Government’s revenue.

In his words: “To this end, Halkin has made huge investments and will continue to do so for the duration of the licence. This we will do with our top management team, made up of Nigerians from Bayelsa state and other Niger Delta states. All that we ask is that Halkin is allowed to do the work we’ve been awarded the license to do.”