Nigeria: Govt Grants Provisional Award Tenders for 57 Marginal Oilfields

The federal government has provisionally awarded tenders to develop 57 of its marginal oilfields, which could net the government $500 million in signature bonuses.
A report yesterday by Reuters quoted four sources familiar with the matter as saying that provisional award letters were sent last week by the Department of Petroleum Resources (DPR).
The DPR, it was further learnt, requested payment within 45 days in order for the bid winners to secure the awards of the marginal fields which are smaller oil blocks typically developed by indigenous 
companies.
Nigeria is looking to boost production from the fields to bolster state finances and increase local participation in the oil sector, which provides the bulk of the country's foreign exchange.
While local companies have become increasingly important to the industry, it remains dominated by international oil majors.

The 57 oilfields in the current auction, which was launched last June, are part of the first marginal field round in nearly 20 years.

DPR head, Mr. Sarki Auwalu, had said previously that he expected Nigeria to net $500 million from the signature bonuses, which companies, for the first time, pay in either dollars or naira.

The sources said the bonuses each company would pay range from a few million dollars to more than $12 million.

Although a DPR's spokesman did not immediately return a call, seeking comment, a source within the company told THISDAY that the company was planning a detailed statement on the development before the end of the week, saying that it remains a public event.

Curated & Edited
Lawrence Momah
Lead Bus. Dev.
Semec Agencies Nigeria Limed