The federal government through the Department of Petroleum Resources (DPR) has set the guidelines for the marginal oil field bid round scheduled to take place later this year or early 2018 and could potentially see scores of investors jostling to acquire 46 oil acreages during the exercise, THISDAY reports.
Of the 46 acreages up grabs, it was however gathered that the DPR is considering setting aside some of the oil blocks for discretionary award to firms owned by Niger Delta indigenes, in order to sustain the prevalent peace in the oil-rich region and give its citizens a sense of ownership in Nigeria’s oil wealth. According to DPR sources, at least 25 of the marginal fields in the current bid round are promising and if developed could produce 5,000 to 10,000 barrels per day of oil equivalent (bpoe).
Under the guidelines for the current marginal field bid round, interested investors will be required to pay $50,000 each for a Competent Persons Report (CPR). The CPR will require bidders to provide details of their shareholding structure, names of their directors, track record in the oil and gas sector, audited financial statements, partnership and/or collaboration with indigenous firms, and financial resources to bid and pay for the oil acreages.
After the CPR stage, investors will also pay $15,000 each as data mining fees to enable them gain access to the relevant data on the acreages that will be placed on offer. At this stage of the process, investors will be availed information on the size of the fields, seismic surveys, and past appraisals conducted by IOCs, among other relevant information. After the data mining stage, the DPR will commence the technical evaluation of the bids submitted by the firms, during which several investors which fail to meet the criteria will be dropped.
Investors that have passed the technical evaluation process will then be invited to submit their commercial bids in a process that will be open to the public. Expectedly, the oil acreages will go to the highest bidders who will be given a timeline within which to pay for the oil acreages. Where a bidder fails to meet the payment terms, the second bidder (reserve bidder) will be invited by the DPR to take up the block.
An official of the DPR who preferred not to be named, said that successful bidders in the forthcoming exercise will also be expected to confirm their willingness to pay $300,000 as signature bonus. He also disclosed that the indigenous companies, which must have “at least 51 per cent of the beneficiary interest in the company, must be registered solely for exploration and production business”.topics from