Marginal oil field: NUPRC realises N174bn from signature bonus paid by companies

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Thursday disclosed that it realized a sum of N174billion from the signature bonus paid by the companies for the marginal oil fields.

It also disclosed that it has revoked marginal oil fields awarded to 33 companies for failing to meet the 45 days deadline required to pay the signature bonus for the fields.

The Chief Executive of Officer of NUPRC, Engr. Gbenga Komolafe made the disclosure on Thursday while speaking on the award process at a meeting with the awardees in Abuja.

According to him, the marginal field guidelines provided for 45 days for the payment of signature bonus which has since elapsed.

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He said a notice has been issued to that effect as well as to the relevant potential awardees.

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 noted 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 were not considered by license holders for immediate development due to assumed marginal economics under prevailing conditions.

“Similarly, those with exploratory wells drilled on the structure were reported as oil and/or gas discoveries and left unattended for more than 10 years.

“Fields that leaseholders consider for farm-out due to portfolio rationalization. Lastly, fields which the President may, from time to time, identify as such”.

On what would happen to the fields for which signature bonuses were not paid, he said the fields would be returned to the basket of fields available for awards.

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