Oil firms, comprised of consortiums and joint venture partners were part of the 600 companies that bided for 57 marginal oil fields put on offer by the Department of Petroleum Resources (DPR).
Marginal fields are small oil fields that major oil companies considered unprofitable and auctioned to indigenous companies under a competitive bidding round.
DPR had on Monday June 1, 2020, launched its first licensing round for marginal oilfields 17 years after the last auctioned was conducted. The bid rounds will last 10 weeks and conducted electronically. The bids were closed on June 21.
The fields that are on offer are located on land, swamp and shallow offshore terrains
Speaking in a television program monitored in Lagos on Tuesday, DPR chief executive officer, Sarki Anwalu, said the bid round exercise has been a success story for Nigeria.
“There has been an increase of bidders’ participation by 30 per cent since the extension date to June 21. We are impressed and happy. As a regulator, if you are auctioning an oil field, you need to get at least three people going after a field. Till date over 600 companies, consortiums have shown interests. So, we can say that we are celebrating success. After the extension, we are moving according to schedules and now, we are at pre-qualification stage. Everything is going perfectly”, he stated
He noted that the bid round exercise is a good thing for the country as lots of people still willing to invest in the country.
“For us to put an offer marginal fields and over 600 companies, consortium, joint ventures partners shown interest, it shows that people have still believe in Nigeria’s economy.
On the deregulation of the downstream sector, Auwalu said he was impressed with the process as Nigeria’s fuel prices now responding to international prices.
He stressed that DPR would continue to ensure that the quality of the product match the price tag at any filling station across the countryand that quality of such product must be sustained so that consumers will have exact quantity per unit price while the safety of workers and integrity of the facilities are assured.