Nigeria expects to have all complete bids for marginal oilfields within 10 weeks, the director of the Department of Petroleum Resources (DPR) said on Wednesday.

On Monday, Nigeria launched its first bidding round for marginal fields – smaller blocks typically developed by domestic companies – in nearly 20 years. It hopes the round will boost oil output and bring in much needed revenues.

“The process is within 10 weeks,” DPR Director Sarki Auwalu, said on a conference call.

“We feel that now it is time to open up again. There is an appetite to invest in Nigeria, particularly in marginal fields, because the cost of development is small, so it is profitable.”

Auwalu said none of the fields being awarded were facing legal issues, but courts have blocked two fields that were revoked in April from being included in any new licensing round.

Sources have said other legal challenges were expected from those holding 11 licenses revoked in April.

Auwalu, during the conference call, also discussed oil production cuts.

He said Nigeria is implementing the full cut it agreed to under the OPEC+ deal, but that the high volume of condensates Nigeria produces makes its oil exports appear higher than they are.

Condensates are an ultra-light oil that are not counted as part of OPEC cuts.

Auwalu said some fields with a particularly large condensate output could “go further to reduce the condensate volume”.

 

Source: Reuters

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