FG Revokes 33 Marginal Field Contracts Over Failure To Pay Signature Bonuses

From Uche Usim, Abuja

The federal government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Thursday disclosed that 33 marginal field contracts were revoked as the awardees could not pay the expected signature bonuses for the 2020 Marginal field bid round within the 45-day window.

NUPRC Chief Executive, Mr Gbenga Komolafe made the disclosure at a meeting with marginal field awardees and leaseholders in Abuja.

The 2020 marginal field awards unveiled last May by the defunct Department of Petroleum Resources (DPR) had 57 fields on offer with 665 companies indicating interest to acquire them.

According to him, 128 awardees have made signature bonus payments for the fields so far, even as he hinted that the commission has raked in about N174bn from the marginal oil field bid round programme.

He said: “The marginal field guidelines provided for 45 days for the payment of signature bonus which has since elapsed, and we have issued a public notice to that effect as well as notified the relevant potential awardees.

It is pertinent to inform you that concerted efforts are being made to ensure that the 2020 MFBR exercise is completed within the shortest possible time.”

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He noted that given the high-cost capital and government’s desire to achieve first oil in the fields, the Commission was making concerted efforts “to ensure that the 2020 MFBR exercise is completed within the shortest possible time”.

Komolafe pointed out that “this engagement with Marginal Field awardees and Leaseholders is for the Commission to state the policy position on the 2020 Marginal Fields Bid Round (MFBR), to enable successful awardees progress to field development phase in line with the Petroleum Industry Act (PIA) 2021”.

While revealing that no new marginal field or farm-out agreements were envisaged under the PIA, he explained that prior to the enactment of the Act, fields were classified as marginal when they are not considered by license holders for immediate development due to assumed marginal economics under prevailing conditions. (Daily Sun)