Weekly Economic and Financial Commentary – June 08, 2020

Reflecting the Federal Government effort to generate more revenue, the Department of Petroleum Resources (DPR) flaged-off the 2020 marginal bid round last week, 18 years after the first one was conducted in 2002. DPR announced that a total of 57 fields located on land, swamp and shallow offshore terrains are on offer. The exercise which will be conducted electronically, will include expression of interest/registration, pre-qualification, technical and commercial bid submission and bid evaluation. According to the DPR guidelines on the 2020 oil bid round exercise, and payment by interested bidders shall attract non-refundable chargeable fees as follows, Application fee of N2 million per field, Bid Processing Fee of N3 million per field, Data prying fee of $15,000 per field, Data Leasing fee of $25,000 per field, Competent Persons Report of $50,000 and $25,000 for Fields Specific Report. The DPR also unveiled that plans are underway to commercialise its 96 gas flare points in a bid to generate revenue and ensure domestic consumption of gas.