Nigeria Approves Guidelines For 2020 Marginal Field Bid Round

By Ochoma Mike, in Abuja

The Nigerian government has approved the Guidelines for bid rounds for marginal fields, which shall be launched soon.

The timeline for the round, after launch, will take a maximum of six months.

Application form (for bidding) will be provided by the Department of Petroleum Resources (DPR), the country’s regulatory agency for the hydrocarbon industry.

There are 56 marginal fields in the bid basket, including 11 fields, the licences for which were revoked in early April 2020.

The application process shall attract non-refundable chargeable fees as follows:

Application fee: ₦2 Million Naira per field.
Bid Processing Fee: ₦3Million Naira per field.
Data prying fee: $15,000.00 per field. Data prying shall be on appointment.
Data Leasing fee: $25,000.00 per field.
Competent Persons Report: $50,000.00 (Fifty Thousand US Dollars).
Fields Specific Report: $25,000.00.
Application fees and processing fees be paid into the Treasury Single Account (TSA). Signature Bonus be paid into the Federation Account. The fees for data leasing, data prying, Competent Persons Report (CPR) and Field Specific Report should be paid into the National Data Repository (NDR) account for repayment.

The guidelines say that applicant must show evidence of technical and managerial capability. The applicant shall demonstrate ability to fully meet the objective of undertaking expeditious and efficient development of a Marginal Field. Where there is little or no track record of petroleum operations, interested companies would be expected to demonstrate ability to manage or develop in that direction in the short to medium term.

Company shall confirm willingness to pay the offered Signature Bonus if successful. Such monies will be paid into the into the Federation Account.

The bid round shall soon be announced, after which detailed milestones include the following steps:- –

Submission of application by interested companies

– Prequalification of interested companies

– Announcement of Pre-qualified companies

– Submission of detailed Technical and Commercial Bids by Prequalified companies

– Evaluation of Technical and Commercial Bids

– Announcement of Winning Bids.

The DPR will manage the process, ensuring compliance to the tenets of the guidelines.

SOURCE: African Oil and Gas

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