…Bids close in 10 weeks
Nigeria expects to have all complete bids for the 57 marginal oilfields put out for investors within 10 weeks, the director of the Department of Petroleum Resources (DPR) said on Wednesday.
Last Monday, Nigeria launched the bidding round for 57 marginal fields. The marginal fields are smaller blocks typically developed by domestic companies. The energy sector in Nigeria had expected this to be done since nearly 20 years.
DPR senior officials said plans are also underway to commercialise its 96 gas flare points, in a bid to generate revenue and ensure domestic consumption of gas.
The marginal fields and the commercialization, it is believed, will boost oil output and bring in much needed revenues.
“The process is within 10 weeks. We feel that now it is time to open up again. There is an appetite to invest in Nigeria, particularly in marginal fields, because the cost of development is small, so it is profitable,” DPR Director Sarki Auwalu told Reuters on Wednesday.
He told the agency that none of the fields being awarded were facing legal issues, but courts have blocked two fields that were revoked in April from being included in any new licensing round.
The news agency said unnamed sources have warned that other legal challenges were expected from those holding 11 licenses revoked in April.
Auwalu, during the online chat, also discussed oil production cuts. He said Nigeria is implementing the full cut it agreed to under the OPEC+ deal, but that the high volume of condensates Nigeria produces makes its oil exports appear higher than they are.Condensates are ultra-light oil that are not counted as part of OPEC cuts.
The DPR boss said some fields with a particularly large condensate output could “go further to reduce the condensate volume”.
Chibisi Ohakah, Abuja
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