Upstream commission to close 2020 marginal oil field transaction

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it is set to close out the 2020 marginal field bid round programme in line with the Petroleum Industry Act, 2021 (PIA).

The Commission Chief Executive, Mr Gbenga Komolafe, in a notice to participants in the programme indicated that an in-house work team has already been constituted to deal with outstanding issues.

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These issues include addressing the concerns of awardees with a view to close out issues affecting multiple awardees per asset and formation of Special Purpose Vehicles (SPV) by awardees in line with the respective letters of the award.

The Commission called on awardees who have issues to use the resolution mechanism provided in the overriding national interest.

Komolafe also stated that NUPRC is working with leaseholders to agree on transition mechanisms for the marginal field bid round exercise.

He restated that the 45 days period for payment of signature bonus by successful awardees as stipulated by the Marginal Field Guidelines has lapsed.

He assured those who have fully paid their signature bonuses that the Commission will ensure that all applicable guidelines to enable them to progress to the next stage of the exercise, are fully implemented.

NUPRC, under the defunct Department of Petroleum Resources (DPR), announced 57 marginal field offers in June 2020.

DPR said 591 firms submitted their Expression of Interest forms, out of which 540 were pre-qualified, while 405 applicants submitted 482 bids.

DPR then shortlisted 161 companies as potential awardees, out of which 50 per cent were said to meet all conditions and therefore, were eligible for the awards of the marginal oil fields.

By May 2021, the successful bidders have been named in a $500 million (or N235 billion) transaction while the winners got their letters on May 30, 2021.