Further to our news alert on 13 April 2020 in which we highlighted reports that the Minister of State for Petroleum Resources had received approval from President Muhammadu Buhari to schedule a bid round for marginal fields, the Department of Petroleum Resources has now announced the commencement of the 2020 marginal field bid round exercise and issued the Guidelines for the Award and Operations of Marginal Fields in Nigeria, 2020 (the “Guidelines”).
A total of fifty-seven (57) fields located on land, swamp and shallow offshore terrains are on offer.
The Guidelines set out the general terms for the proposed marginal bid round, as well as bidding procedures for the award of these marginal fields.
According to the Guidelines, following the formal announcement of the commencement of the exercise and the launch of the marginal fields online portal (the “Marginal Fields Bid Portal”), the process will include the following steps:
- Expression of Interest (EoI)/ Registration on the Marginal Fields Bid Portal;
- Pre-qualification of interested companies;
- Announcement of pre-qualified companies;
- Data prying, leasing and purchase of reports;
- Submission of detailed technical and commercial bids by pre-qualified companies;
- Evaluation of technical and commercial bids; and
- Announcement of winning bids.
Interested companies are required to register through the Marginal Fields Bid Portal which can be found at https://marginal.dpr.gov.ng
The entire process is not expected to take longer than six (6) months, from the date of announcement and commencement (i.e. 1 June 2020), to the signing of farm-out agreements with the leaseholders.
More details will follow shortly in our comprehensive newsletter.
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