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 FG bars debtors from bidding for oil fields

FG bars debtors from bidding for oil fields

Companies, including their promoters, indebted to the Federal Government will not be allowed to participate in the newly launched bid round for marginal oilfields, the Department of Petroleum Resources has said.

The DPR, in a document obtained by correspondent, said applicants should demonstrate the ability to fully meet the objective of undertaking expeditious and efficient development of a marginal field.

“The company shall provide evidence of the ability and willingness to pay the offered signature bonus, if successful,” it added.

A marginal field is any field that has been discovered and has been left unattended for a period of not less than 10 years, from the date of first discovery or such field as the President may, from time to time, identify as a marginal field, according to the DPR.

The DPR had announced on Monday the start of the 2020 Marginal Field Bid Round for indigenous companies and investors interested in participating in the exploration and production business in the country.

The PUNCH reported on Wednesday that the Federal Government might generate N3.17bn from the payment of fees for the 57 marginal fields on offer.

The DPR said consideration would be given for host community/state participation, as well as a commitment to social project and/or proposal aimed at the socioeconomic development of the populace in the host community/state.

It said, “Pre-qualification will be open to all indigenous companies that are duly registered to carry out petroleum exploration and production operations in Nigeria.

“Companies, including their promoters, that are indebted to the government will not be pre-qualified. Also, companies and their promoters that currently have assets that are not being operated in a business-like manner will not be pre-qualified.”

The regulatory agency said the pre-qualification exercise would be done on objective criteria, guided by rules of general application.

It said after the exercise, pre-qualified companies would be invited to submit a field-specific technical and commercial bid based on relevant and available field data.

The DPR said, “Applicants are required to submit details of the proposed technical work programme for field(s) in which they are interested. The work programme is expected to provide plans for the development and operations of the field.

“Following the completion of the pre-qualification and selection processes, the recommendations shall be forwarded to the Minister of Petroleum Resources and subsequently to the President pursuant to the Petroleum Act, 1969, as amended, for approval.”

It said successful applicants would thereafter be duly notified for payment of signature bonus before the award of the fields.

“If any company fails to pay the required signature bonus, the next reserve bidder shall be considered,” the agency added.

According to the DPR, applicable fees per field are N500,000 for registration; N2m for application; N3m for bid processing; $15,000 for data prying; $25,000 for data leasing; $50,000 for competent persons’ report, and $25,000 for field-specific report.

The bid round is aimed at growing production capacity by expanding the scope of participation in Nigeria’s petroleum sector, and increasing oil and gas reserves base through aggressive exploration and development effort. (SOURCE: Punch)

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