FG Restricts Debtors from Bidding for Marginal Oil fields …. to generate #3.17bn

Chinazor Megbolu

The Federal Government of Nigeria has said it would restrict debtors from bidding for the latest launched marginal oil fields.

In a statement the Department of Petroleum Resources (DPR), on Friday, disclosed that oil companies indebted to the Nigerian Government will not be allowed to partake in the bid round for marginal oilfields as oil organisations.

The Director, DPR, Sarki Auwalu, in the statement, hinted that the 57 oil fields, listed for bidding were small oil fields that major oil companies considered unprofitable and auctioned to local firms under a competitive bidding round.

According to him; “we are so impressed by the responses so far. For so long the industry has been stagnant to increase its reserves and one of the strategies to increase our reserves is through this exercise”.

Auwalu also said that marginal field is an oil field that has been discovered and has been left unattended to for about a decade, from the date it was first discovered as the President determines.

“The fields on offer are located on land, swamp and shallow offshore terrains while the present bid rounds are expected to last for 10 weeks,” Auwalu said.

While pointing out that the process would be conducted electronically, noted that the last marginal bid rounds were undertaken in 2003.

“Pre-qualification will be opened to all indigenous companies that are duly registered to carry out petroleum exploration and production operations in Nigeria.

“Companies, including their promoters, that are indebted to the government will not be pre-qualified.

“Also, companies and their promoters that currently have assets that are not being operated in a business-like manner will not be pre-qualified,” he said.

Auwalu in the statement, buttressed that the applicable fees per field are N500,000 for registration, N2 million for application, N3 million for the bid processing, $15,000 for data prying, $25,000 for data leasing, $50,000 for competent persons’ report, and $25,000 for a field-specific report.

However, he maintained that DPR, during the bid rounds is expected to generate N3.17 billion from the payment of fees for the 57 marginal fields on offer, according to a report.

The federal government agency in the statement further averred that the pre-qualification exercise would be done on objective criteria, that would be guided by rules of general application.