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Nigeria Works on Marginal Round Terms
Wednesday, September 20, 2017
The Nigerian government, through the Department of Petroleum Resources (DPR), will lay out the guidelines for the planned marginal field bid round. The marginal round, which could offer up as many as 46 blocks, is expected to take place later this year or in early 2018.
According to reports from the country, the DPR will set aside several of the blocks for discretionary awards to firms owned by Niger Delta indigenees. This is in an effort to promote peace in the turbulent oil-rich Niger Delta.
According to DPR sources, at least 25 of the marginal fields in the current bid round are promising and if developed could produce 5,000 to 10,000 barrels per day of oil equivalent.
The federal government embarked on the award of marginal fields in the late 1990s after international oil companies (IOCs) had abandoned significant unappraised acreage and left others to lie fallow for many years even after oil discoveries, largely because the fields were not commercially viable for the oil majors to deploy their expensive technologies and resources.