The Department of Petroleum Resources says it will not permit companies and their promoters indebted to the Federal Government to participate in the new bid round for marginal oilfields.
According to a DPR document, 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,” the document added.
According to the DPR, a marginal field is any field that has been discovered and has been left unattended to for a period of not less than 10 years, from the date of first discovery of such field as the President may, from time to time, identify as a marginal field.
On Monday, the DPR announced 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.
First News gathered that N3.17billion may be realised by the Federal Government from the payment of fees for the 57 marginal fields on offer.
The Department added that host community/state participation and commitment to social project and/or proposal aimed at the socio-economic development of the populace in the host community/state would be given consideration.
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 Department stated that the pre-qualification exercise would be done on objective criteria, guided by rules of general application, adding that 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 added that 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 DPR said.
The DPR also said applicable fees per field include 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.
First News learnt that 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.