TheCable

Timipre Sylva, minister of state for petroleum resources, says companies that won marginal oilfield licenses have been given the option of paying signature bonuses in either naira or dollar.

Speaking at the fifth edition of the special ministerial briefing in Abuja on Thursday, Sylva said the option was given to simplify the process for Nigerian companies and reduce strain on the country’s external reserves.

TheCable had reported that the Department of Petroleum Resources said the federal government is expected to generate $500 million from signature bonuses on the 57 marginal oilfields.

“We have started to receive signature bonuses paid by the winners,” he said.

“At least from the last account report I got from DPR, almost 50 percent of the winners have paid. What we are expecting from the whole process is about $600 million.

“And of course, we have also given an allowance for people to pay in Naira so you have to pick which currency to pay in – in naira or dollars.

“So at this point, we cannot give any figure in any currency but just to tell you that payments have been encouraging and they have up to April 20, 2021.”

Speaking on the $1.5 billion rehabilitation of the Port Harcourt refinery, Sylva said the $1.5 billion rehabilitation for the Port Harcourt refinery is based on recommendations by experts.

He explained that the government will get enough revenue from privatising a functional refinery.