Investors still awaits information on Nigeria’s Bid Rounds for 30 Marginal Oil Fields

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MON, SEPT 4 2017-theG&BJournalInternational investors are still expecting specific information about bid rounds for 30 marginal oil fields since the Nigerian National Petroleum Corporation (NNPC) announced last month that the federal government will soon open bids for the fields.

A close source told theG&BJournal that the reason for the delay is that the NNPC is yet to finalise the modalities for the Bids but will come out with all the information any investor will require for the fields before the end of this month.

Already, members of the Independent Petroleum Producers Group (IPPG) have indicated interest in the marginal fields and the Group Managing Director of the Corporation, Dr. Maikanti Baru welcomed their interest when he met with the group last month.

The Bids represents an opportunity for foreign oil and gas firms, with advanced technologies and expertise to work closely with local companies operating in the upstream subsector since the new fields are expected to be farmed out to foreign companies at the end of the exercise. The farm-out is subject to the parties seeking and obtaining the consent of the original farmee and the federal government.

NNPC sources say the money raised from the Bids will help further ease the pressure on the country’s revenue.

The federal government has been on the verge of a daily oil production level of about 2 million barrels per day and hopes to push for the 4 million barrels target which will also push up entire reserves to about 40 billion barrels when the new rounds of Bids is over.

NNPC officials note that firms seeking to participate would need to engage Nigeria’s regulator, the Department of Petroleum Resources (DPR), to ensure that conditions for oil field leasing aligns with federal regulations.

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