FG targets N189bn from marginal oil fields sale

THE Federal Government has said it hopes to realise $500 million (N189.5 billion) from the sale of the nation’s 57 marginal oil fields.

Minister of State for Petroleum Resources, Chief Timipre Sylva, stated, adding that already 50 per cent of the target had been realised.

He spoke in Lagos at the end of the just-concluded 2021 First Quarter Ministerial Meeting.

Sylva, who also spoke on the rehabilitation of refineries and petrol pricing, said, “The process has been concluded. Letters have gone out and people have started paying their signature bonuses. We have received almost 50 per cent of signature bonuses already.

“161 companies were allocated marginal fields and I will not give you the details of how many have paid. I’ve told you that up to 50 per cent of those winners have paid.”

The minister also spoke on the transparency of the exercise, saying, “I think this is the best we could have got clearly. If you followed the processes, we published; people applied; companies were pre-qualified; companies went to the data room and of course, assessment of their bids was done by competent people.

“There were consultants involved in the whole process and bidders emerged, and that’s all I can say. It was a very transparent process and I think a lot of people are also hailing the process.”

Commenting further on the rehabilitation of the nation’s refineries, he said, “I have already spoken about the refineries in a detailed interview. Last week Wednesday, the Federal Executive Council approved comprehensive rehabilitation of Port Harcourt Refinery and that is going to start forthwith. ‘’

“It was approved for the sum of $1.5 billion and we are going to also start the rehabilitation of Warri and Kaduna Refineries shortly.”

Also commenting on petrol pricing, the minister said the government was not aware of any increase in the price of petrol, adding, “Definitely, there is no fuel (price) increment. The price remains N162 per litre. We are in discussion with labour and with other stakeholders, and until all those discussions are concluded, we are not going to fully deregulate. “But we understand that some people, and that is criminals, are beginning to sell product for more than the approved price and the relevant agencies should ensure that those marketers are sanctioned.

“You will recall that on my inauguration, the Ministry of Petroleum Resources was given mandate areas to achieve and we are very well on course.”