Here's Why Over 600 Companies Are Interested In Nigeria's Marginal Oilfields

Two weeks after AllNews reported that over 300 companies bid for the marginal oil fields of Nigeria, the Director of the Department of Petroleum Resources (DPR), Auwalu Sarki, said the number increased to 600 companies, as they struggle to apply to be prequalified for the ongoing bid rounds in Nigeria’s 57 Marginal Fields.

According to Sarki, so much interest has been received due to DPR's transparent process.

He disclosed that after the extension of the deadline to June 21, the number of bidders increased.Sarki said the overwhelming bid is worth celebrating. Note that marginal oil fields are that which has not been developed for more than 10 years, but discovered by major international oil companies (IOCs) - operating within the country - during an exploration of larger acreages.

Why The Overwhelming Interest?

The increase in interested bidders could have been motivated by the fact that the last time Nigeria requested for bid for the marginal oil fields was in 2003. That's why investors are keen on getting their hands on any of the 57 Marginal Fields, "First I will say that we have really witnessed an increase in bidders after the extension of the deadline to June 21. There has been almost a 30 percent increase in participation.

"If you are making a bid or auctioning any oil field, you need to get 10 people per field really going after the field. We have 57 fields and we have over 600 companies. So we can say that we are celebrating success so far. After the extension, we are moving according to schedule and now we are in the phase where we do pre-qualification for the bidders to apply. Everything is going perfectly.”

The overwhelming interest shows that there are several investors interested in investing in Nigeria despite the business environment and the decline in demand for oil in the market.

What's The Schedule For Bidding Process?

According to the schedule, the following will occur from June 21 to August 16; Evaluation of submission and preparation of report, June 22 to July 5, Announcement of Pre-Qualified Applicants and Issuance of Field Teasers by July 5, Data Prying, Leasing, Purchase of Reports from July 6 to August 16, Payment of Application and Bid Processing Fee and Submission of Technical and Commercial Bid from July 6 to August 16.