Zenith Energy Limited has announced it has successfully pre-qualified for the 2020 Marginal Field Bid Round in Nigeria.
The international oil and gas production company announced in June that it was participating in the Bid Round organised by the Department of Petroleum Resources in Nigeria, as a technical and financial partner to a Nigerian registered oil and gas company.
According to the release on the company’s website, “Participation in the 2020 Bid Round entails a process commencing with the achievement of pre-qualification by companies deemed to have the necessary technical and financial capabilities to participate and duly registered in Nigeria to carry out hydrocarbon production and exploration activities by DPR, followed by submission of a commercial and technical bid for evaluation under a number of criteria by the Honourable Minister of Petroleum Resources (“HMPR”). It is concluded with the potential assignment of a Marginal Field once all the necessary formalities have taken place and final approval from the President of Nigeria, in accordance with the Petroleum Act (1969), is obtained.”
Commenting of the feat, the Chief Executive Officer of Zenith, Andrea Cattaneo said, “We are very pleased to have successfully pre-qualified for the 2020 Bid Round with our Nigerian partner. This Bid Round represents an exceptionally rare opportunity for Zenith to acquire at highly advantageous terms, a large, underdeveloped, near-term production asset. This is especially the case in the current low oil price environment.
Further, the near-term production potential of certain assets is expected to facilitate the achievement of financing agreements to support the required acquisition and development costs necessary to restore commercial production from these assets.
I look forward with great enthusiasm to further progressing this opportunity.”
The 2020 Marginal fields bid round for 57 fields in Nigeria is the country’s first in eighteen years, with the last bid conducted in 2002. DPR revealed last month that it received over 600 bids for the Marginal Oilfields.
