Marginal Oil Fields Award Followed Stipulated Regulations — NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that it followed the stipulated regulations in the award of marginal oil fields to qualified bidders.

NUPRC said a newspaper publication claiming that it “did not adhere to its own regulations while implementing the 2020/2021 marginal fields’ award” was, therefore, incorrect.

The Commission’s head of Public Affairs and Media Relations, Oliade Shonola, in a statement said the claim by the publication that the Nigerian Extractive Industries Transparency Initiative (NEITI) in its latest report ‘Oil and Gas Industry Report 2021’ indicated that the NUPRC awarded marginal fields to some companies prior to payment of Signature Bonus by the firms, was also incorrect.

NUPRC said, “the above statements and the rest of the narratives contained in the report by the newspaper, purportedly extracted from the 2020 NEITI Report, are incorrect and a misrepresentation of both the process and outcome of the 2020 marginal field award exercise.

“Apparently surprised that NEITI could be associated with such a narrative, the Commission reached out to the establishment which promptly disclaimed the newspaper report, insisting that the report by the newspaper does not reflect the position in the said NEITI report,” the Commission said.

It said, to correct the misrepresentation and the impression it could create in the minds of unsuspecting members of the public, the Commission would like to explain the process, which represents the true situation concerning the 2020 bid exercise.

NUPRC explained that “the 2020 marginal field bid exercise was started by the now defunct Department of Petroleum Resources (DPR) following Presidential Approval obtained to conduct the exercise. The bid exercise was launched on June 1, 2020, and a total of 57 Marginal fields were made available for bidding through a transparent online electronic bidding system.

“Of the number of companies that indicated an interest in the bid exercise by submitting their applications within the deadline set for that purpose, five hundred and forty (540) companies were pre-qualified in line with the procedure set out in the Bid Guidelines. Ultimately, 482 out of the 540 companies pre-qualified submitted bids for the various fields on offer.

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