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Marginal fields: FG unveils outlines conditions to awardees, IOCs Thursday

The Federal Government will on Thursday outline its policy position for the marginal field bid round to eligible awardees who have fully or partly complied with signature bonus payment in the 2020 marginal field programme.

It said the policy position would be made public at a forum being planned by the Nigerian Upstream Petroleum Regulatory Commission in Abuja.

The commission disclosed this in a statement issued in Abuja on Tuesday and signed by its Chief Executive, Gbenga Komolafe.

The statement read in part, “The objective of the engagement forum is to state the policy position of the commission for the marginal field bid round.

“This is to enable progress of the exercise in line with the programme guidelines and in compliance with the Petroleum Industry Act 2021.

 “The forum will also appraise, distill and clarify issues associated with the MFBR and provide relevant updates on status to all stakeholders in line with transparency policy of government.”

It said all eligible awardees and relevant international oil companies associated with the MFBR were expected to attend the meeting.

The NUPRC had earlier announced that participating interest for marginal fields where the potential awardees failed to pay all the required signature bonus would be offered to reserve bidders.

It disclosed this in a public notice issued by the commission, adding that eligible reserve bidders would be contacted shortly.

On May 31, 2021, the defunct Department of Petroleum Resources issued letters of award to investors for the production of crude oil from 57 marginal fields.

The firms would be exploring a total of 57 marginal fields located on land, swamp and offshore terrains, which were put on offer by DPR in June 2020.

But in the notice from the NUPRC, some marginal field award winners had yet to pay the required signature bonus before taking over their preferred fields.

The notice, which was signed by Komolafe, read in part, “Participating interest for fields where the potential awardees have failed to pay all the required signature bonus will be pro-rated and the portion not paid for has automatically reverted to the bid basket and will be offered to reserve bidders, in line with paragraph 9(iii) of the MFBR Guidelines.

“This is to ensure maximum participation of a wide cross section of Nigerians. Eligible reserve bidders will be contacted shortly to provide proof of funds for payment of the applicable signature bonus, as a basis for the issuance of potential award letters for the equity participation taken back into the bid basket.”

The commission informed the general public, and in particular, all recipients of the Letter of Notification of Potential Awardee Status in the 2020 Marginal Field Bid Round that the 45 calendar days allowed for payment of the requisite signature bonus had since lapsed.

“Accordingly, in line with the rules and guidelines governing the 2020 Marginal Field Bid Round and the Notification of Potential Award Letters, all offers made to potential awardees who have failed to pay the signature bonus for their respective equity participation have expired by operation of law, and such interests have reverted to the bid basket due to effluxion of time for payment of the applicable signature bonus,” it stated.

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