Indigenous oil firms, A.A. Rano, Shafa Exploration, Matrix Energy, and Vhelblerg Exploration were among oil companies awarded marginal oil field licence by the Department of Petroleum Resources, DPR, on Monday. The award came a year after 2020 marginal field bid round began with 591 companies applying to win 57 oil fields on offer. The oil fields are located onshore, swamps and offshore.
For the successful investors, kindly view our update; Marginal Fields; 10 Things to note in Asset Acquisition
Engr. Sarki explained that after undergoing lengthy and vigorous process, 161 companies were shortlisted as potential awardees out of which 50 percent have met all conditions. He noted that the department would not abandon the companies after the award but would work with them to ensure immediate development and attainment of first oil in record time.
He said: “The journey began exactly one year ago, 1stJune 2020 with the launching of the Bid round registration portal. The portal eased the registration and application process and ensured a transparent exercise. “It also provided the platform for the virtual data room. In case you missed our update Review of the 2020 Marginal Field Bid Round
It is important to state that the industry-enabled National Data Repository (NDR) provided all the requisite technical and logistics support for the successful conduct of the exercise”. He said DPR would ensure that the indigenous companies face minimal challenges from the International Oil Companies, the original lease owners for the fields.
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, w
DPR estimates that Nigeria would produce additional 100 million barrels of crude oil from the 57 fields, in the coming years. Speaking at the award ceremony in Abuja, DPR Director/CEO, Engr. Auwalu Sarki said the fields would boost Nigeria’s daily oil production capacity beyond the current three million barrels per day.
The entire Megathos Law Practice team is congratulating all the successful investors and wishing them good success.
To learn more, please download the update below:
Nigeria concludes Marginal Bid Round with award of certificates_Business Update_ MLP
