FG seeks N189.5bn revenue from marginal oilfield bid round

Chinazor Megbolu |

The Federal Government is seeking N189.5 billion revenue generation from the ongoing marginal field bid round.

The Department of Petroleum Resources (DPR), made the disclosure, saying that successful bidders would be allowed for the first time in Nigeria to pay the acquisition cost of the oilfields in the nation’s naira currency.

The Director, DPR, Mr Sarki Auwalu, said the bid round would be rounded off before the end of the first quarter of year 2021.

The oil and gas industry regulator also had noted that on June 1, 2020 at the start of the 2020 marginal field bid round, 57 fields were available for local firms and investors interested in participating in the exploration and production business in the country.

The DPR further highlighted that in January, 2021, 161 companies had already been shortlisted to advance to the final stage of the bid round.

“When we started the marginal fields bid round, we reviewed the first and learnt from the experience. We had 24 fields awarded in 2003; unfortunately, only 13 out of the 24 seems to be producing,” Auwalu said.

He pointed out there were over 630 applicants, out of which about 500 prequalified.

“What we did internally is to look at the competent person reports and objectively estimate the average signature bonus on a field. We estimate to have not less than $500 million, which is on the conservative side.

“We are avoiding any third-party interference since government really believes in us and we believe the investors are having confidence in the process,” he said.

Auwalu, however, buttressed that there would be no discretionary award as well.