Nigeria’s Department of Petroleum Resources (DPR) has announced the commencement of its 2020 Marginal Field Bid Round exercise, with a total of 57 fields located on land, swamp, and shallow offshore terrains available to both local companies and foreign investors interested in taking part in the exploration and production business of oil in Nigeria.
This follows a marginal field licensing round announced by Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Sylva, in April. It is said that the process is expected to be concluded in less than six months. The final phase will see the signing of farm-out agreements with leaseholders.
Before the official announcement yesterday by DPR, various stakeholders in the country’s oil and gas industry had continually tasked the Federal Government to conduct an oil bid. The commencement of the 2020 oil bidding round is coming 18 years after the first one, which was conducted in 2002.
The decision reportedly became necessary due to the current economic crisis resulting from the pandemic, which has made the full implementation of the country’s 2020 budget projections and spending a heinous task. It is applauded by many and believed to be a step in the right direction by the Federal Government, through the DPR.
The department stated that the exercise, which will be conducted electronically, will include expression of interest/registration, pre-qualification, technical and commercial bid submission and bid evaluation.
According to the set guidelines by the DPR, “the 2020 oil bid round exercise, and payment by interested bidders shall attract non-refundable chargeable fees as follows, an Application fee of N2 million per field, Bid Processing Fee of N3million per field, Data prying fee of $15,000 per field, Data Leasing fee of $25,000 per field, Competent Persons Report of $50,000 and $25,000 for Fields Specific Report. With the above, interested bidders are expected to pay a total of $115,000 in statutory fees and another N5 million in local currency. At the official exchange rate of $360/$1, the 57 oil fields on offer give N2,364,800,000 including the N5 million payment.”
%20has%20a%20href=https://www.dpr.gov.ng/fg-flags-off-2020-marginal-fields-bid-round/announced/a%20the%20commencement%20of%20its%202020%20Marginal%20Field%20Bid%20Round%20exercise,%20with%20a%20total%20of%2057%20fields%20located%20on%20land,%20swamp,%20and%20shallow%20offshore%20terrains%20available%20to%20both%20local%20companies%20and%20foreign%20investors%20interested%20in%20taking%20part%20in%20the%20exploration%20and%20production%20business%20of%20oil%20in%20Nigeria.This%20follows%20a%20marginal%20field%20licensing%20round%20announced%20by%20Nigeria's%20Minister%20of%20State%20for%20Petroleum%20Resources,%20strongChief%20Timipre%20Sylva/strong,%20in%20April.%20It%20is%20said%20that%20the%20process%20is%20expected%20to%20be%20concluded%20in%20less%20than%20six%20months.%20The%20final%20phase%20will%20see%20the%20signing%20of%20farm-out%20agreements%20with%20leaseholders.Before%20the%20official%20announcement%20yesterday%20by%20strongDPR/strong,%20various%20stakeholders%20in%20the%20country's%20oil%20and%20gas%20industry%20had%20continually%20tasked%20the%20Federal%20Government%20to%20conduct%20an%20oil%20bid.%20The%20commencement%20of%20the%202020%20oil%20bidding%20round%20is%20coming%2018%20years%20after%20the%20first%20one,%20which%20was%20conducted%20in%202002.The%20decision%20reportedly%20became%20necessary%20due%20to%20the%20current%20economic%20crisis%20resulting%20from%20the%20pandemic,%20which%20has%20made%20the%20full%20implementation%20of%20the%20country's%202020%20budget%20projections%20and%20spending%20a%20heinous%20task.%20It%20is%20applauded%20by%20many%20and%20believed%20to%20be%20a%20step%20in%20the%20right%20direction%20by%20the%20Federal%20Government,%20through%20the%20DPR.The%20department%20stated%20that%20the%20exercise,%20which%20will%20be%20conducted%20electronically,%20will%20include%20expression%20of%20interest/registration,%20pre-qualification,%20technical%20and%20commercial%20bid%20submission%20and%20bid%20evaluation.According%20to%20the%20set%20guidelines%20by%20the%20strongDPR/strong,%20emthe%202020%20oil%20bid%20round%20exercise,%20and%20payment%20by%20interested%20bidders%20shall%20attract%20non-refundable%20chargeable%20fees%20as%20follows,%20an%20Application%20fee%20of%20N2%20million%20per%20field,%20Bid%20Processing%20Fee%20of%20N3million%20per%20field,%20Data%20prying%20fee%20of%20$15,000%20per%20field,%20Data%20Leasing%20fee%20of%20$25,000%20per%20field,%20Competent%20Persons%20Report%20of%20$50,000%20and%20$25,000%20for%20Fields%20Specific%20Report.%20With%20the%20above,%20interested%20bidders%20are%20expected%20to%20pay%20a%20total%20of%20$115,000%20in%20statutory%20fees%20and%20another%20N5%20million%20in%20local%20currency.%20At%20the%20official%20exchange%20rate%20of%20$360/$1,%20the%2057%20oil%20fields%20on%20offer%20give%20N2,364,800,000%20including%20the%20N5%20million%20payment./em){kind=link}