Marginal Fields To Generate $500m- DPR

The Federal government has said that it expects to generate $500m from the signature bonuses on marginal oilfields.

The Director, Department of Petroleum Resources, Sarki Auwalu, disclosed this while featuring on Arise TV at the weekend.

Auwalu said that the marginal oilfield licenses will be awarded by the end of March, adding that companies will be allowed to pay signature bonuses in naira.

Marginal fields which are smaller oil blocks that are typically developed by indigenous companies. The new licensing round, launched in June, is the first marginal field round since 2002.

Nigeria currently has 13 active fields out of the 24 fields awarded, while the government had revoked the 11 non-producing licenses.

The Director the Department had narrowed the list of bidders to 161 and aimed to conclude the process by the end of the first quarter.

He also noted that the signature bonuses would bring the companies together and enable them to enter the fields.

“This marks the first time Nigeria will allow companies to pay oilfield acquisition costs in naira. The oil price crash of the past year has squeezed the availability of U.S. dollars, making it difficult for companies to procure them.

“A lot of companies now are happier”, he said.

A total of 57 fields located on land, swamp and shallow offshore waters are included in the bid round.