…Nigeria’s last licencing for marginal fields was in 2003
So, on Monday, the Nigerian government announced bid round for 57 marginal fields for licensing. This is part of the Nigerian government’s efforts to put to profitable exploration some of the oil fields lying for more than a decade.
What is marginal field?
Marginal fields refer to discoveries which have not been exploited for long, at least for 10 years, mostly because they are small sizes, or the oil reserves are not significant to the extent of not being economically viable. Nigeria’s last licencing for marginal field was in 2003.
Here are three important things you need to know about the bid round:
1. Bid Is Only Available to Indigenous Companies/Investors: This bid round fits into Nigeria’s local content initiative. As such, only indigenous companies and investors interested in participating in the exploration and production business in Nigeria can submit bids for the marginal fields.
2. Bid Will Be Conducted Electronically: The government agency in charge, the Department of Petroleum Resources, DPR say all bids must be conducted electronically. A total of 57 fields located on land, swamp and shallow offshore terrains are on offer. It said the exercise include expression of interest/registration, pre-qualification, technical and commercial bid submission and bid evaluation.
3. Exercise To Last Minimum 6 Months: The DPR said in a statement announcing its guidelines for the award and operations of the marginal fields that the “the overall process is not expected to take longer than six months, from the date of announcement and commencement to signing of the farm-out agreement with the leaseholders”.
You can submit here