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NUPRC to invite reserve bidders for marginal field round

NUPRC to invite reserve bidders for marginal field round
January 25
11:48 2022

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it will invite eligible reserve bidders for the 2020 marginal field bid round programme.

This is coming after specific initial bid winners failed to pay the requisite signature bonuses within the stipulated time. 

Gbenga Komolafe, NUPRC’s chief executive officer, said this in a public notice on Monday.

Marginal fields are smaller oil blocks developed by indigenous companies, and they have not been exploited in at least the last ten years.

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In May 2021, the Department of Petroleum Resources (DPR) — now NUPRC — had completed the first successful bid programme after 18 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 commission noted that the 45 calendar days allowed for payment had passed, paving way for reserve bidders to participate in the rest of the process.

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The commission further said it would contact eligible reserve bidders to provide proof of funds for payment of signature bonus.

“Notice is hereby given to the general public, and in particular, all recipients of the Letter of Notification of Potential Awardee Status in the 2020 Marginal Field Bid Round (MFBR) that the forty-five (45) calendar days allowed for payment of the requisite Signature Bonus has since lapsed,” the statement reads. 

“Accordingly, in line with the rules and guidelines governing the 2020 Marginal Field Bid Round and the Notification of Potential Award Letters, all offers made to potential awardees who have failed to pay the Signature Bonus for their respective equity participation have expired by operation of law, and such interests have reverted to the bid basket due to effluxion of time for payment of the applicable Signature Bonus. 

“The Commission accepts no responsibility or liability in respect of any action or activity by any such potential awardee, their partners, associates, representatives or privies in further pursuit of any consideration or award under the said MFBR. 

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“Participating interest for Fields where the potential awardees have failed to pay all the required Signature Bonus will be pro-rated and the portion not paid for has automatically reverted to the bid basket and will be offered to Reserve Bidders, in line with paragraph 9(iii) of the MFBR Guidelines. This is to ensure maximum participation of a wide cross-section of Nigerians. 

“Eligible Reserve Bidders will be contacted shortly to provide proof of funds for payment of the applicable Signature Bonus, as a basis for the issuance of potential award letters for the equity participation taken back into the bid basket.”

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