The Department of Petroleum Resources (DPR) on Monday awarded letters to successful investors in the 2020 marginal field bid round programme.
This is the first successful bid since 2003 when 24 assets were put on offer.
Marginal fields are smaller oil blocks developed by indigenous companies. They are often discovered on an IOC-owned block where there has been no activity in at least the last 10 years.
Over 600 companies had applied to be pre-qualified for the bid rounds of 57 marginal fields which began on June 1, 2020.
The companies which emerged winners are: A.A Rano Nigeria Limited, Dutchess Energy, Emadeb Energy Services Limited, Matrix Energy Limited, Shafa Exploration and Production Company Limited, Casiva Limited, Duport Midstream Company Limited, and Vhelbherg Exploration and Production Development Company Limited, among others.
Speaking during the presentation of letters to the winners, Sarki Auwalu, director of DPR, said that a total of 591 firms submitted expression of interest forms, out of which 540 were pre-qualified during phase one of the exercise.
He said 422 bids submitted by 405 applicants were evaluated during the second phase of the exercise.
“In the end, 161 companies were shortlisted as potential awardees, out of which 50 per cent has met all conditions and therefore eligible for awards today. We are set to ensure opportunities are extended to other deserving applicants to fill the gap,” Auwalu said.
“The DPR is not just a regulator, we are an opportunity house. We drive creativity and transformation and we use these in all of our activities. This is done in the overriding national interest.”
The DPR director noted that a technical workshop would be organised with all bid winners for guidance on field development and operations.
He explained that the challenges that hindered the attainment of full development of the last marginal fields award 17 years have been considered and tackled. He pointed out that of the 24 fields awarded in 2003, 11 fields remained undeveloped locking in over 40 million barrels of oil. “With the lessons of the previous exercise we want to refocus, change the approach, we have developed strategy to ensure you (the companies) and the awarded fields achieve early development.”
“The DPR will continue to follow up and guide the awardees every step of the way. For instance, a guiding template of working agreement has been drafted for joint awardees and discussions have reached advanced stage between DPR and lease holders on the farmout agreement and other technical enablers,” Auwalu added.
The DPR had said the federal government is expected to generate $500 million from signature bonuses for the 57 marginal oilfields.