Tuesday, January 19, 2021

FG to earn N7.9bn from 161 finalists of oilfield bid round

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The Federal Government is estimated to generate 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 announced in June last year, 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 N49.09m per field.

A marginal field is any field that has been discovered and has been left unattended for a period of not less than 10 years, from the date of first discovery, or such field as the President may, from time to time, identify as a marginal field.

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.