High number of offshore fields raises risk in Nigeria’s 2020 marginal field bid round

There are 29 shallow water fields among the 52 fields on offer in the ongoing Nigerian marginal field bid round, which wraps up on September 2, 2020.

This represents 56% of the total.

Compared with six offshore fields (or 25%) out of the 24 marginal fields offered in 2003/2004, this current round is enormously riskier.

Offshore fields are more expensive.

An average 20Million barrel field in 30 metres of water will require in excess of $65Million to reach first oil, according to modelling by Africa Oil+Gas Report.

In the last marginal field round, offshore fields represented the highest proportion of the fields that didn’t make it to first oil.

Out of the six offshore fields (all located, incidentally, in acreages operated by Chevron) awarded in 2004, only one made it to first oil.

The fields with the fastest routes to market, in the class of 2004, are located on land. Most of those that struggled to reach first oil, are in swamp terrain.

Source: Africa Oil + Gas Report