The air of uncertainty over when the list of marginal fields to be
put on offer in the next licensing round would be released has continued
to put prospective investors on edge, fuelling concerns over the
transparency of the process.
Interested investors are increasingly worried that one month after
the announcement of the bid round, the Department of Petroleum Resources
(DPR) has yet to make public the list of the assets to be put up for
sale.
It was gathered that there is a list of assets that could be offered
circulating among some highly connected Nigerian oil companies. Some of
the companies have already told the DPR that they are interested in some
of the fields and even gone ahead to say how much they are willing to
pay.
It is believed in some quarters that the lack of full disclosure of
relevant information regarding the bid round, especially the list of
assets up for takes, may be tilting the bid round towards favouring a
select group of investors. Some of the investors who have seen the list
being bandied are skeptical of its credibility.
It was also gathered that among the 31 fields on the list are Uzuaku
field on Oil Mining Lease (OML) 11 in Ogoni land, the Egbolom field on
OML 23 that was previously operated by Shell in Rivers State, three
offshore fields on OML 100 (Usoro, Ikong, Ibiom) and two on OML 67
(Amaniba and Ekpat).
“I am of the view that it is unfortunate that at this critical period
in our life as a nation, such an important transaction is shrouded in
secrecy. I am aware that the list of assets (marginal fields) to be
auctioned is known only by a few people. Even the new marginal fields’
guidelines are not as well-known and publicised as they should be,” said
an industry source who is knowledgeable about the transaction.
According to him, there is a strong chance that the ongoing bid round
is just to compensate certain people and for the benefits of certain
interests.
“For the DPR and the Ministry of Petroleum Resources to prove
otherwise, they need to immediately make all relevant information
publicly available. The bid rules should be posted on the ministry’s
website and that of the DPR; together with fields to be auctioned. Every
relevant piece of information should be made publicly and readily
available and accessible. It is also pertinent that the list of bidders
as shortlisted from time to time, be made publicly available,” the
source added.
Akin Adetunji, executive vice chairman, Terra Energy Services Nigeria
Limited, said the DPR should explain why the list has not been
published. “It is only the DPR that knows why the list has not been
published. If they are calling for bids and publishing guidelines, they
should tell why the list of the assets is not yet out.”
A top official in DPR told BusinessDay that the official list of the
marginal fields to be auctioned had not been made public, adding that no
prospective bidders have seen the list. What is circulating among some
people is not the authentic list.”
Diezani Alison-Madueke, minister of petroleum resources, who declared
the second bid round open in Abuja on November 28, had stated that 31
fields are on offer with 16 of them located onshore, while the remaining
15 are in the continental shelf.
The announcement was followed by a road show by the DPR to different
parts of the country to brief the investing public about the
opportunities.
The minister had said that the road show would be followed by a
competitive bidding process that would take place over three and a half
months, adding that the Federal Government was committed to transparency
in the bid process, which is expected to be over by mid 2014.
The DPR had recently issued a notice on its website informing
prospective bidders that the 2013 Marginal Field Bid Round was
continuing as planned, adding that “modalities and other information on
all the fields on offer, including application process, shall soon be
uploaded on this site.”
“Prospective applicants are assured that the time frame earlier set
for the exercise remains unchanged and reasonable time would be allowed
for proper completion at every stage of the Bid Round,” the agency said.
Going by the time schedule for the application process disclosed by
DPR during the road show, the list of fields, the map and application
forms were to be uploaded to the website by December 14 and the
submission of applications and pre-qualification was to take place over 3
weeks from the December 16 to the January 3.
It would be recalled that in 2003, the first marginal fields
licensing round was held and 24 licences were awarded to indigenous
players, and investors and operators in the oil and gas industry eagerly
awaited the next round for over three years.
BusinessDay had on June 10, 2013 reported that investors were eagerly
awaiting the next round of licensing, adding that operators whose
fields are producing, were angling to have additional ones in order to
enlarge their asset bases.
Nigeria, Africa’s top oil producer, seeks to increase its crude oil
production to 4 million barrels per day and grow the reserves to 40
billion barrels by 2020, but the industry is being plagued by crude oil
theft and delay in the passage of the Petroleum Industry Bill (PIB),
which is aimed at overhauling the industry.
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