FG to Earn N2.3bn from Applications for Marginal Fields

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Emmanuel Addeh in Abuja

Nigeria would rake in at least N2.3 billion from non-refundable application fees for the ongoing marginal oilfields bid rounds, the Department of Petroleum Resources (DPR) has said.

The 2020 oil bid round is coming 18 years after the first one was conducted in 2002, with the agency’s Director and Chief Executive Officer (CEO), Mr. Sarki Auwalu, promising Nigerians an open and transparent process.

The agency’s guidelines on the 2020 oil bid round indicated that payment by interested bidders shall attract non-refundable application fees of N2 million per field.

It added that the bid processing fee of N3 million per field, data prying fee of $15,000 per field, data leasing fee of $25,000 per field, competent persons report of $50,000 and $25,000 for fields specific reports would also apply.
However, the bid round is opened to indigenous companies and investors interested in participating in the exploration and production business in Nigeria.

According to the regulatory agency, in the 2020 oil bid round, a total of 57 fields located on land, swamp and shallow offshore terrains are on offer and the exercise would be conducted electronically.

It said the process would include expression of interest/registration, pre-qualification, technical and commercial bid submission and bid evaluation.
With the above, interested bidders are expected to pay a total of $115,000 in statutory fees and another N5 million in the local currency, the agency noted.

At the official exchange rate of $360/$1, the 57 oil fields on offer gives N2,364,800,000, including the N5 million payment, DPR said.

The agency added that all application fees and processing fees are expected to be paid into the Treasury Single Account (TSA), while the signature bonuses are expected to be paid into the Federation Account.

Also, fees for data leasing, data prying, Competent Persons Report (CPR) and Field Specific Report are to be paid into the National Data Repository (NDR) account for repayment.

According to the approved guidelines, applicants must show evidence of technical and managerial capability and must also demonstrate the ability to fully meet the objective of undertaking expeditious and efficient development of a marginal field.

DPR supervises all petroleum industry operations being carried out under licences and leases, including monitoring the industry to ensure that activities are in line with national goals and aspirations as well as processing industry applications for leases, licences, and permits.