London-listed Zenith Energy has successfully pre-qualified in the 2020 marginal field bid round coordinated by Nigeria’s Department of Petroleum Resources.
The company with operations in Italy, Tunisia, Azerbaijan, and the Republic of the Congo will be participating as a technical and financial partner to a Nigerian-registered oil and gas company.
“This bid round represents an exceptionally rare opportunity for Zenith to acquire at highly advantageous terms, a large, underdeveloped, near-term production asset,” Zenith Energy’s CEO Andrea Cattaneo said. “This is especially the case in the current low oil price environment.”
According to Cattaneo, “The near-term production potential of certain assets is expected to facilitate the achievement of financing agreements to support the required acquisition and development costs necessary to restore commercial production from these assets.”
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Early this month, ADM Energy Plc, a natural resource investment company, announced it has also pre-qualified for the second stage of Nigeria’s 2020 marginal field bid.
The Department of Petroleum Resources (DPR), on June 1, had announced the launch of a new bid round for 57 marginal fields covering onshore, swamp and shallow offshore fields.
If successful, the Federal Government is hoping the 57 fields may earn Nigeria an additional $5.7 billion, an income higher than the loans the Federal Government sought from the Bretton Woods institutions within the last few months to address the effects of the coronavirus pandemic.
