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UPDATE 2-Nigeria expects marginal oilfield bids within 10 weeks

Published 03/06/2020, 15:53
Updated 03/06/2020, 15:54

(Adds OPEC cuts comment)
By Libby George and Alexis Akwagyiram
LAGOS, June 3 (Reuters) - 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".

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