June 19, 2024

NUPRC plans to conclude 2020 marginal field bid programme


Oredola Adeola

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has revealed plans to conclude the 2020 marginal field bid round programme in line with the new Petroleum Industry Act 2021 (PIA).

Mr. Gbenga Komolafe, Chief Executive Officer,CEO NUPRC made this known in a notice sent to participants in the programme on Tuesday.

The Federal Government through the defunct Department of Petroleum Resources (“DPR”), in what was considered as the 2nd bid round since 2002/2003, on May 31, issued licence letters to successful investors for the development of 57 marginal oilfields.

The licences according to the government are expected to generate around $500 million from signature bonuses for the federal government.

According to the NUPRC CEO, the Commission has put in place all necessary machinery to progress the bid round exercise to a conclusion.

Komolafe said, “The commission has already set up an in-house work team to deal with outstanding issues which includes distilling and addressing the concerns of awardees with a view to close out issues affecting multiple awardees per asset.

“These issues also involved formation of Special Purpose Vehicles (SPV) by awardees in line with the respective letters of award.

The Commission urged awardees with the indicated issues to avail themselves of the resolution mechanism provided in the overriding national interest.

He also stated that the Commission was collaborating with leaseholders to agree on transition mechanisms in line with the PIA and the aspirations of government for the marginal field bid round exercise.

Komolafe, disclosed that the 45 days period for payment of signature bonus by successful awardees as stipulated by the Marginal Field Guidelines has lapsed, assuring those who have fully paid their signature bonuses that it would ensure that all guidelines were implemented.

“As regulator and business enabler, the Commission will ensure that all applicable guidelines to enable them progress to the next stage of the exercise, are fully implemented,” the NUPRC concluded.

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