Adedapo Adesanya
By Adedapo Adesanya
The Department of Petroleum Resources (DPR) is awaiting the approval of President Muhammadu Buhari to announce the results of the marginal fields bid round.
DPR concluded the analysis of the bids in the last two weeks and it has sent the results to the Minister of State for Petroleum Resources, Mr Timipre Sylva, who is to deliver the outcome to President Buhari, who doubles as the Minister of Petroleum in Nigeria.
Business Post understands that the three and a half month-long bid round exercise featured 52 fields and was concluded on September 15, 2020.
It was gathered that this was heavily subscribed; the largest number of bid applications in any hydrocarbon licencing sale in Africa in close to 10 years.
While the round started with over 600 applications, it closed with at least 100 applications making it all the way, each delivering at least $115,000 to the Nigerian treasury in the process.
By all parameters, there will be more money to be made when the results are announced as the winning bidders will be expected to pay a signature bonus before the final allocations.
Nigerian marginal fields bid round is restricted only to locals due to the low investment environment brought about by the coronavirus.
Most applicants in this round, the second such formal round of its type since the last was held in 2003, were Nigerian independent companies who already produce crude oil and gas and are seeking to expand their portfolios.
It was discovered that others were Nigerian oil service contractors who now feel they should take positions in hydrocarbon acreages.
A marginal oil field is an oil field that has reserves and has remained productive for a period of over 10 years.
Emerging companies will be awarded a lease of Nigeria’s 57 marginal fields.
