FG: We’ve received 50% of signature bonuses for marginal oilfields

The federal government says 50 percent of the companies that won the marginal oil field bid rounds have paid their signature bonuses.

Timipre Sylva, minister of state for petroleum resources, told journalists at the end of the ministry’s first quarter 2021 governance meeting in Lagos on Tuesday that the bid rounds were transparent.

“The process has been concluded. Letters have gone out and people have started paying their signature bonuses. We have received almost 50 percent of signature bonuses already; 161 companies were allocated marginal fields and I will not give you the details of how many have paid,” he said.

“I think this is the best we could have got clearly. If you followed the processes, we published, people applied, companies were prequalified, and companies went to the data room and of course, assessment of their bids was done by competent people.

“There were consultants involved in the whole process and bidders emerged, and that’s all I can say. It was a very transparent process and I think a lot of people are also hailing the process.”

Marginal fields are smaller oil blocs developed by indigenous companies. They are often discovered on an IOC-owned block where there has been no activity in at least the last 10 years.

The last marginal oilfield bid round held in 2002.

At the time, 24 licenses were awarded to 31 indigenous companies — 11 of which were revoked by the government for inactivity.

TheCable had reported that the DPR said the federal government is expected to generate $500 million from signature bonuses for 57 marginal oilfields.

On December 31, Paul Osu, DPR head of public affairs, announced a shortlist of 161 successful companies for the bid.

The agency had sent provisional award letters to companies requesting payment within 45 days in order to secure the awards.

On the price of petrol, Sylva said the price remains N162 until all discussions are concluded.

He said marketers selling beyond the approved price will be sanctioned by regulatory bodies.