dpr marginal field bid round
The Department of Petroleum Resources (DPR) says it has successfully shortlisted 161 companies to advance to the final stage of the bid round process for 57 marginal … Nigeria’s government, through the Department of Petroleum Resources (DPR), recently launched its first marginal field bid round in almost 20 years. But the implementing agency announced that the bid round exercise is open to indigenous companies and investors interested in participating in exploration and production business in Nigeria. At the official exchange rate of $360/$1, the 57 oil fields on offer gives N2,364,800,000 including the N5 million payment. The… What are the main terms of the Guidelines? Knowledge base; Ideas Forum; Administration. Nigeria’s precarious economic situation may lighten up pretty soon as the Department of Petroleum Resources (DPR) yesterday announced the commencement of marginal fields bid rounds for 2020. For potential investors, there are at least 57 Marginal Fields located on land, swamp and shallow water terrains in the bid basket. Once designated a marginal field, that area is “farmed-out” from the wider Oil Mining Lease (“OML”) area. A bid round was scheduled in 2013 but was significantly delayed following the initial announcement and ultimately never concluded. To embed, copy and paste the code into your website or blog: Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: [HOT] Read Latest COVID-19 Guidance, All Aspects... [SCHEDULE] Upcoming COVID-19 Webinars & Online Programs, [GUIDANCE] COVID-19 and Force Majeure Considerations, [GUIDANCE] COVID-19 and Employer Liability Issues. A marginal field is any field that has reserves booked and reported annually to the DPR and has remained unproduced for a period of over 10 years. With the above, interested bidders are expected to pay a total of $115,000 in statutory fees and another N5 million in local currency. This bid round is coming 18 years after the last bid round in 2002 and is open to indigenous oil & gas companies and investors interested in participating in the exploration and production business in Nigeria. The DPR says the objective of the 2020 marginal field bid round is to deepen the participation of indigenous companies in the upstream segment of the industry and provide opportunities for technical and financial partnerships for investors. What it Takes to Get a Marginal Oil and Gas Field in Nigeria. The Department of Petroleum Resources (DPR) says the bid round process for its 57 marginal oilfields in the country is still ongoing. Whilst it is possible that prospective bidders could complete their evaluation of the fields, submit bids and negotiate and finalise a farm-out agreement within six months, progress could well be disrupted by the low oil price environment and the ongoing COVID-19 pandemic. The first marginal field bid process started in 2001 and resulted in the award of 24 marginal fields to 32 companies. The appetite of the superior OML holders to engage with this process and quickly conclude farm-out agreement terms will have a significant bearing on meeting this timetable. Recently, the DPR has taken steps to revoke previously awarded marginal fields (some of which are being contested but have been included to be freshly awarded in this 2020 bid round). Knowledge base + New ticket. Marginal field is any field that has reserves booked and reported annually to the DPR and has remained unproduced for a period of over 10 years. DPR helpdesk. Fifty-seven marginal fields have been made available, being a mix of onshore, swamp and shallow-offshore fields. Copyright © The Department of Petroleum Resources 2020. According to the DPR guidelines on the 2020 oil bid round exercise, and payment by interested bidders shall attract non-refundable chargeable fees as follows, Application fee of N2 million per field, Bid Processing Fee of N3million per field, Data prying fee of $15,000 per field, Data Leasing fee of $25,000 per field, Competent Persons Report of $50,000 and $25,000 for Fields Specific Report. The overall effect is to cede such area/field from the original OML holders to the recipient of the marginal field award (but this arrangement does not establish a new OML for the marginal field). The marginal field bid round is one of the options the Federal government… DPR - Enquiry Management System :help desk software by Maxfront. NAN reports that a marginal field is any field that has reserves booked and reported annually to the DPR and has remained unproduced for a period of over 10 years. Data prying fee of fifteen thousand US dollars per field (previously three thousand US dollars). PM NEWS notes that a marginal field is any field that has reserves booked and reported annually to the DPR and was unproductive for a … The Department of Petroleum Resources (DPR) says 161 successful companies have been shortlisted to advance to the next and final stage of the bid round process for 57 marginal oilfields in the country. DPR reacts as fuel queues resurfaces, warns marketers. In cases where the Competent Persons Report is available for selected fields on offer in the bid round exercise, the Marginal field bid round portal, enables the purchase of this report by the applicant. The Department of Petroleum Resources (DPR) has said that the bid round process for its 57 marginal oilfields in the country is still ongoing. sign in. Nigeria’s Department of Petroleum Resources (“ DPR ”) announced on 1 June 2020 the launch of a new marginal field bid round. 9th Prefabrication & Modular Construction Summit, 21 – 24 March 2017, Singapore DPR - Enquiry Management System Knowledge base - 2020 Marginal Field Bid Round Schedule - :help desk software by Maxfront Historically, these arrangements have involved the provision of technical and financial services to the indigenous oil company, who must be the designated operator of the field. For the 2020 oil bid round exercise, DPR announced that a total of 57 fields located on land, swamp and shallow offshore terrains are on offer. Nigeria’s federal government, through the Department of Petroleum Resources (DPR), on Thursday announced that 161 successful companies had been shortlisted to advance to the next and final stage of the bid round for 57 marginal oilfields. Nigeria losing jobs to China over moribund facilities, says DPR. DPR reacts as fuel queues resurfaces, warns marketers, Nigeria losing jobs to China over moribund facilities, says DPR, FG to reactivate moribund oil, gas support facilities nationwide – DPR, DPR, aviation firm partner to de-risk oil, gas operations, DPR Flags Off Search, Rescue, Command Centre In Lagos, DPR warns businessmen not to float illegal refineries, Local content: DPR counsels Nigerians to invest in oil and gas production, DPR woos investors for modular refineries, WORKING VISIT TO NIGER DELTA PETROLEUM REFINERY (NDPR), OGBELE, PORT HARCOURT, DPR Cautions Depot Owners against Hoarding Petrol, Co-location and Crude pipelines: Lessons from telcos for Nigeria’s oil sector. This may be difficult to negotiate and there can often be complex issues around how losses from pipelines are to be shared amongst the various users. This raises questions about the validity of the marginal field interest where the OML expires or is revoked and the position of the marginal field holder before the DPR and the Government. The Department of Petroleum Resources (DPR) says the bid round process for its 57 marginal oilfields in the country is still ongoing. The agency added that all application fees and processing fees are expected to be paid into the Treasury Single Account (TSA) while Signature Bonuses are expected to be paid into the Federation Account. The commencement of the 2020 oil bid round is coming 18 years after the first one was conducted in 2002. The 2020 Marginal Field Bid Round (Bid Round) is making progress in Nigeria! This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. The process of registration, application and submission of Technical and Commercial bids is online via the Marginal Field Bid Round Portal – marginal.dpr.gov.ng. Previous Post OGTAN DELEGATION VISITS DPR; Next Post DEPOTS STOCK LEVEL FOR PMS AS AT 28th May 2020 AT DEPOTS; Recent Posts. © Bracewell LLP var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising. Also, fees for data leasing, data prying, Competent Persons Report (CPR) and Field Specific Report should be paid into the National Data Repository (NDR) account for repayment. Bid processing fee of three million naira per field (previously three hundred thousand naira). ”The 2020 marginal oilfield bid round process is still ongoing in line with our published timelines on DPR website and bid … ”The 2020 marginal oilfield bid round process is still ongoing in line with our published timelines on DPR website and bid portal. Nigeria’s Department of Petroleum Resources (“DPR”) announced on 1 June 2020 the launch of a new marginal field bid round. Nigeria’s precarious economic situation may lighten up pretty soon as the Department of Petroleum Resources (DPR) yesterday announced the commencement of marginal fields bid rounds for 2020. The Department of Petroleum Resources (DPR) on Monday announced the commencement of the 2020 marginal field bid round. This document also provides clarifications, explanations and directives on the implementation of the Guidelines. The Department of Petroleum Resources (DPR) Monday said the Federal Government has shortlisted 161 firms for the final stage of the bid round process for country’s 57 marginal oilfields. The marginal field holder will assume all liabilities in relation to the marginal field area, including environmental and decommissioning matters. Registration fee of five hundred thousand naira. The Department of Petroleum Resources (DPR), has formerly announced the commencement of 2020 Marginal Field Bid Round exercise. The Department of Petroleum Resources (DPR) says 161 successful companies have been shortlisted to advance to the next and final stage of the bid round process for 57 marginal oilfields in … The award of the marginal fields triggers a farm-out agreement to be made with the original OML holders, which allocates responsibilities and liabilities as between the area holders, as well as the royalty payable and terms for accessing infrastructure. Only wholly-owned indigenous oil companies and investors with substantially Nigerian interest operating as oil exploration and production businesses … The flag-off of the 2020 marginal bid round comes amidst the country’s poor financial situation which has made the implementation of the 2020 an Herculean task for the Muhammed Buhari government with capital and recurrent expenditures already slashed. Application fee of two million naira per field (previously two hundred thousand naira). Following its marginal fields licensing rounds in 2001 and 2013, the Nigerian Department of Petroleum Resources (DPR) recently released guidelines on the 2020 licensing round. The Guidelines reveal that the DPR’s expectation is for the final stage of the process, signature of a farm-out agreement, to be reached within six months of the 1 June 2020 announcement. Build a Morning News Brief: Easy, No Clutter, Free! Fifty-seven marginal … Prior to yesterday’s announcement, stakeholders in the country’s oil and gas industry have consistently urged the Federal Government to conduct an oil bid round for the purpose of raising revenue to fund some of its critical projects. Mr Paul Osu, … “Marginal fields” were first established in Nigeria in 1996 in an effort to engender local participation and operation in the oil and gas industry. Click here to read more about how we use cookies. However, this position has not been tested before the Nigerian courts and the precise legal effect of the Guidelines is unclear. portal for the exercise; marginal.dpr.gov.ng to access the Guildelines for the Award and Operations of Marginal Fields in Nigeria, 2020, and the requirements for participation,” DPR stated, Vision : To be a Leading Regulator in the Oil and Gas Sector, Mission : To ensure the sustainable development of Nigeria’s Oil and Gas resources across the value chain for our stakeholders through effective regulation, while entrenching world class professionalism, accountability, and transparency. While the current circumstances are challenging headwinds for any award process, marginal fields may be less susceptible to the impact of low oil prices as they tend to be smaller in scale, require less capital to develop and are near-term development opportunities. Alongside the farm-out, it will be necessary for marginal field owners to secure adequate access to neighbouring infrastructure to ensure production can be exported from the field – often owned by the superior OML holder. It added that the exercise which will be conducted electronically, will include expression of interest/registration, pre-qualification, technical and commercial bid submission and bid evaluation. THE Department of Petroleum Resources, DPR, has shortlisted 161 successful companies for the final stage of the bid round, targeted at selling Nigeria’s 57 … ”The 2020 marginal oilfield bid round process is still ongoing in line with our published timelines on DPR website and bid portal. It depicted a marginal field as any field that has reserves booked and reported yearly to the DPR and has remained unproduced for over 10 years. All rights reserved. The Marginal Fields bid round is … Law Firms: Be Strategic In Your COVID-19 Guidance... [GUIDANCE] On COVID-19 and Business Continuity Plans. This can raise payment security demands from OML holders to support this allocation. The 2020 Marginal Field Bid Round has commenced in Nigeria!18 years after the last Marginal Field Bid Round in Nigeria, the Department of Petroleum Resources (DPR) on behalf of the Federal Government of Nigeria has announced the commencement of the 2020 Marginal Field Bid Round exercise (The Bid Round).The Bid Round is a golden opportunity for discerning investors, who have … The DPR also released new guidelines covering the bid process, the award and farm-out of marginal fields and their operation (“Guidelines”). The marginal field holder does not appear to possess a direct interest in the OML; instead it obtains a contractual interest by virtue of the farm-out agreement, which is akin to a sub-lease from the OML holders. On 1 June 2020, the Nigerian Department of Petroleum Resources ("DPR") announced the launch of a new bid round for a total of 57 marginal fields covering onshore, swamp and shallow offshore … According to the approved guidelines, applicants must show evidence of technical and managerial capability and must also demonstrate the ability to fully meet the objective of undertaking expeditious and efficient development of a Marginal Field. The Department of Petroleum Resources (DPR) has announced that it has shortlisted 161 successful companies to advance to the next and final stage of the bid round process for 57 marginal oilfields in the country. There are strong indications he may call for the bid as close as two weeks from now. The DPR also said the successful bidders would be allowed for the first time in the nation to pay the acquisition cost of the oilfields in naira. A marginal field is defined in the Guidelines as a field that has been discovered and left unattended for a period of not less than 10 years from the date of first discovery, or such field as the President of Nigeria may identify. We consider the essential features of marginal fields – a somewhat complex arrangement of law, regulation and practice – along with the significant requirements of the 2020 bid process and new Guidelines, and the issues that participants, investors and lenders should have in mind. Copyright © var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. The purchase of this report is mandatory for companies applying for … The parameters of the farmed-out marginal field area may raise questions about how discoveries that either straddle or lie deeper than the field boundaries should be allocated. The Department of Petroleum Resources (DPR) on Monday said the Federal Government has shortlisted 161 firms for the final stage of the bid round process for country’s 57 marginal oilfields. After a three and a half month-long exercise, the Department of Petroleum Resources (DPR) has concluded this year Marginal Fields bid round and it is awaiting the approval of President Muhammadu Buhari who doubles as the minister of petroleum before announcing winners. The Guidelines partially address this issue by stating that the marginal field farmee has the same rights as an OML holder (including the right to deal directly with the DPR) and all rights, interests and obligations of the OML holder are transferred to the marginal field farmee through the farm-out agreement. The Department of Petroleum Resources (DPR) on Monday said the Federal Government has shortlisted 161 firms for the final stage of the bid round process for country’s 57 marginal … The Department of Petroleum Resources (DPR) has calculated that the marginal field round will secure at least $500 million in signature bonuses. The Federal Government, through the DPR, had announced on June 1, 2020 the start of the 2020 Marginal Field Bid Round, with 57 fields available for indigenous companies and investors interested in participating in the exploration and production business in Nigeria. Timipre Sylva, Nigeria’s minister of state for Petroleum Resources, has received approval from President Muhammadu Buhari to schedule a bid round for marginal fields. A total of 57 fields, spread across onshore, swamp and shallow water, are on offer. Marginal fields are awarded to indigenous companies but often involve farm-in and joint venturing arrangements with international oil companies (within mandatory maximum participation allowances). Data leasing fee of twenty-five thousand US dollars. The Federal Government is expecting to generate at least $500m in revenue (N189.5bn) from the ongoing marginal field bid round, the Department of Petroleum Resources has said. Nigeria's upstream petroleum sector: looking back at 2020 and looking ahead in 2021, Texas Governor Lifts Mask Mandate, but Employers Must Still Comply with the Occupational Safety and Health Act, Florida Water System Hack Highlights Challenges for Public Utility Cybersecurity, Regulators to Review Market Design and Reliability Following 2021 Polar Vortex, Power Struggles: Maximizing Insurance Recoveries from Winter Storms. Marginal Fields Bid Round – 2020. By continuing to browse this website you accept the use of cookies. the 2020 Marginal Field Bid Round.