As the Nigerian government considers holding a bid round for marginal fields, we thought to highlight 10 things to expect when the bid guidelines are released by the Department of Petroleum Resources.
- The fields on offer would be publicly announced.
- Applicable fees may include (i) Application Fee, (ii) Bid Processing Fee, (iii) Competent Person’s Report Fee (iv) Data Prying Fee (v) Data Leasing Fee.
- Criteria for evaluation may include: financial capacity, technical capacity, host community commitment, E&P background of promoters amongst others.
- The fields, which an applicant can bid for would be restricted to a certain number.
- The bid and award process should be not more than 6 months.
- Increased transparency through public opening, verification, evaluation and announcement of commercial bids.
- Signature Bonus should be a significant commercial bidding criterion.
- The duration of the marginal field license would be 5 years with the possibility of a renewal of 10 years subject to fulfillment of work programme.
- Non-payment of Signature Bonus within the prescribed time frame may lead to revocation of award.
- Encouragement of common usage of facilities.
This article was gotten from AO2 Law click here