Bid Winners of Nigeria’s Marginal Oilfield Round Have Started Paying Signature Bonuses

The Federal Government of Nigeria expects about $500 million in signature bonuses from successful companies.
Publish Date
25th March 2021
Read Time
2 minutes

The Nigerian Minister of State for Petroleum Resources, Chief Timipre Sylva, said almost 50% of the companies who won the bid for the fifty-seven (57) marginal oilfields have paid their signature bonuses.

He made this known on Tuesday, 23rd March 20201, on the side-line of the “First Quarter 2021 Ministerial Governance Meeting” in Lagos. The 161 successful bidders emerged from over 600 indigenous oil companies that submitted bids for the Round that commenced in June 2020.

The Federal Government of Nigeria expects about $500 million in signature bonuses from successful companies.

The Minister also confirmed that the government plans to expedite the rehabilitation of the state-owned refineries in Warri, Delta State, and Kaduna, Kaduna State, following the approval of funds by the Federal Executive Council (FEC) for the rehabilitation of the Port Harcourt Refinery.

Speaking on the increase in the price of fuel, he emphasised that the government had not increased the price of Premium Motor Spirit. He warned marketers selling above the approved price would be sanctioned by the appropriate authorities.

Excerpts from his statement:

 “The process has been concluded. Letters have gone out and people have started paying their signature bonuses.”

“We have received almost 50 per cent of the signature bonuses already. 161 companies were allocated marginal fields.”

“I think this is the best we could have gotten. If you followed the process, you will see that we published it and people applied, the companies were pre-qualified and assessment of their bids were done by competent persons.”

“That was how the bidders emerged. It was a very transparent process.”

”Last week Wednesday, FEC approved a comprehensive rehabilitation of the Port Harcourt Refinery.”

“It was approved for the sum of $1.5 billion and we are going to also start the rehabilitation of Warri and Kaduna refineries shortly.”

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