The Federal Government is poised to receive an estimated sum of N7.9bn from the 161 companies shortlisted to advance to the final stage of the marginal fields bid round launched seven months ago.
The Department of Petroleum Resources had advertised in June 1, 2020 the start of the 2020 Marginal Field Bid Round, which ‘is open to indigenous companies and investors interested in participating in the exploration and production business in Nigeria’.
The DPR said then that 57 marginal fields were available, with data from the agency showing that applicants would pay fees totalling N49.09m per field (comprising N5.5m and $115,000).
With each of the 161 finalists paying just for one marginal field, the government would earn N7.9bn. The revenue will be much higher when the fees paid by applicants who did not qualify for the final stage and the signature bonuses to be paid by the successful bidders are added to it.
According to the DPR’s guidelines, applicable fees 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.
“In addition to the above-listed fees, the signature bonus shall be paid by successful bidders prior to award,” the DPR said.
According to the DPR, 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.
