Upstream Regulatory Commission Rakes N174bn From Signature Bonus On Marginal Oil Field
The Nigerian Upstream Petroleum Regulatory Commission has generated the sum of N174bn from the signature bonus paid by the companies for the marginal oil fields.
It also disclosed that the marginal oil fields awarded to 33 companies have been revoked following their inability to meet the 45 days deadline required to pay the signature bonus for the fields.
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The Chief Executive of Officer of NUPRC, Engr. Gbenga Komolafe disclosed these on Thursday while speaking on the award process at a meeting with the awardees in Abuja.
The 2020 marginal field awards were unveiled last May by the then Department of Petroleum Resources. 57 fields were on offer with 665 companies
According to him, the marginal field guidelines provided for 45 days for the payment of signature bonus which has since elapsed
He said a notice has been issued to that effect as well as to the relevant potential awardees.
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He noted that given the high-cost capital and government’s desire to achieve first oil in the fields, the Commission was making concerted efforts to ensure that the 2020 MFBR exercise is completed within the shortest possible time.
Komolafe noted that no new marginal field or farm-out agreements were envisaged under the Petroleum Industry Act.
The PIA was signed into law by President Muhammadu Buhari on 16th August, 2021.
He explained that prior to the enactment of the Act, fields were classified as marginal when: they were not considered by license holders for immediate development due to assumed marginal economics under prevailing conditions.
On what would happen to the fields for which signature bonuses were not paid, he said the fields would be returned to the basket of fields available for awards.
