Amidst allegations of questionable manners in which Marginal Oil Fields award took place, the Department of Petroleum Resources (DPR) says it has concluded arrangements to offer award letters to successful investors in the 2020 marginal field bid round programme today, Monday.
Marginal oil fields are oil assets considered as uneconomical by major oil companies that discovered the fields and because of this abandoned them.
Andy Olotu, former managing director of schlumberger said that there was no transparency in the exercise. He urged Nigerian Government to always put its best forward in everything as this is the only way to achieve the best results.
He alleged that everything was shrouded in secrecy.
“The processes employed by the DPR and the Ministry of Petroleum Resources as regards the award of marginal fields is questionable, as strange bed fellows are marched together to form consortium. They merged people together and say go and bring whatever amount it suits them,” this can’t help the country.
Eddy Wikina, a former managing Director of Treasure Energy and also former External Affairs Manager for Shell Exploration and Production Company SNEPCO, said: “DPR says it has been transparent. Good for them. Did you eventually see the list of the successful bidders in public domain? How many of them have been able to pay the signature bonuses? What will they do for the fields where winners failed to meet the signature bonus payment deadline?”, these are the questions he posed.
But in his own reaction, Biodun Adesanya, managing consultant and chief executive officer of Degeconek, said, “DPR needs to release the letters because some people have paid and their money has been held by government and they would need to move on to some other things. It would amount to tying down money, so, to that extent they should release the letter to those that have discharged their responsibilities by paying”.
There were 57 fields on award, it was understood that the President has asked them, Minister of State for Petroleum Resources, and DPR to use their discretions to award the 57 fields or Dispose them off because the government needs money. It was now left for the DPR and Ministry to determine the best way to use the Presidents directive.
Initially bidders were asked to pay on or before 45 days. Three things happened within the 45 days, some people paid, some paid partially and some did not pay.
Then after the 45 days those who paid money were waiting for the offer letters, these are the people that have been agitating that they have paid, what is holding their letters back?. Those that paid partially were also running around to balance up and luckily Muslim fasting period set in, and they took advantage of that to look for money to make up for the full payment.
The DPR however stated that the letters would be issued at an award ceremony scheduled to hold in Abuja today, May 31.
Paul Osu, Head, Public Affairs, DPR, made the announcement in a statement at the weekend, in Lagos.
He said successful investors who would be receiving their award letters were companies that had fully satisfied all requirements listed in the marginal field bid round guidelines.
Those who are qualify for the offer letters are those that made full payment of signature bonuses within the specified time frame.
He said the DPR would continue to provide transparent regulatory oversight for the oil and gas industry to enable business and create opportunities for investors.
Over 600 companies had applied to be pre-qualified for the bid rounds which began on June 1, 2020.
The DPR said the objective was to deepen indigenous participation in the oil and gas industry as well as add to the country’s production and reserve.
According to the regulatory agency, the marginal field bid round programme is also geared to provide technical and financial partnerships for investors.
Osu said the successful investors who would be receiving their award letters were companies that had fully satisfied all requirements listed in the marginal field bid round guidelines.
He said this included full payment of signature bonuses within the specified time frame.