Nigeria’s Department of Petroleum Resources has announced a change in the manner that marginal oilfields will be allocated, to avoid a reoccurrence of legal problems that arose in a previous bidding round.
The Department announced on Tuesday that although none of the fields that will be awarded is currently facing any legal challenge, courts have blocked two fields revoked in April from being included in any licensing round.
In June, Nigeria launched its first bidding round for marginal fields in almost 20 years.
Addressing the African Marginal Oilfield and Independent Producers webinar participants, Auwalu Sarki, a director in DPR noted the Department had learnt from its previous mistakes which stalled the development of some oilfields and is taking extra precautionary measures to avoid a repetition.
He said, “This time around, our awardees will be credible investors with technical and financial capability.”
“There is also the Post-General Award Conditions. This deals with the transfer of interest post-award. It means awardees cannot transfer more than 49% interest to another party post-award.”
He stated the Petroleum Minister has the power to withdraw the interest of a party in the case of a joint awardee that doesn’t meet their obligations.
Federal Government of Nigeria Announces Increase in Fuel Price
The Federal government, through the Petroleum Products Pricing and Regulatory Agency (PPPRA), announced an increase in the pump price of petrol to between N140.80 and N143.80.
The agency had earlier announced that the pump price of petrol will be determined by market forces as private marketers have been granted the freedom to import fuel.
READ ALSO: PRIVATE OIL MARKETERS HAVE PERMITS TO IMPORT REFINED OIL
Although marketers will determine the prices, the PPPRA had clearly stated it marketers do not have the laxity to determine individual prices.
The Executive Secretary of the Agency, Dr Abdulkadir Umar Saidu, announced yesterday that the new price was gotten after considering the cost of the operations of marketers.
He said, “After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of “140.80 “143.80/litre, for the month of July 2020.”
/strong,%20announced%20an%20increase%20in%20the%20pump%20price%20of%20petrol%20to%20between%20N140.80%20and%20N143.80.The%20agency%20had%20a%20href=https://ibekachikwu.com/nigerias-petroleum-price-now-determined-by-market-forces/earlier%20announced/a%20that%20the%20pump%20price%20of%20petrol%20will%20be%20determined%20by%20market%20forces%20as%20private%20marketers%20have%20been%20granted%20the%20freedom%20to%20import%20fuel. h4READ%20ALSO:%20a%20href=https://ibekachikwu.com/private-oil-markets-have-permits-to-import-refined-oil-pppra/PRIVATE%20OIL%20MARKETERS%20HAVE%20PERMITS%20TO%20IMPORT%20REFINED%20OIL/a/h4 Although%20marketers%20will%20determine%20the%20prices,%20the%20PPPRA%20had%20clearly%20a%20href=https://ibekachikwu.com/marketers-do-not-have-the-power-to-fix-prices-at-their-discretion-pppra/stated/a%20it%20marketers%20do%20not%20have%20the%20laxity%20to%20determine%20individual%20prices.The%20Executive%20Secretary%20of%20the%20Agency,%20Dr%20Abdulkadir%20Umar%20Saidu,%20announced%20yesterday%20that%20the%20new%20price%20was%20gotten%20after%20considering%20the%20cost%20of%20the%20operations%20of%20marketers.He%20said,em%20“After%20a%20review%20of%20the%20prevailing%20market%20fundamentals%20in%20the%20month%20of%20June%20and%20considering%20marketers’%20realistic%20operating%20costs,%20as%20much%20as%20practicable,%20we%20wish%20to%20advise%20a%20new%20PMS%20pump%20price%20band%20of%20“140.80%20“143.80/litre,%20for%20the%20month%20of%20July%202020.”/em){kind=link}