PSC Signings For Nigerian Blocks Postponed, Guardian Divines

An article in Saturday's Guardian says to all appearances the planned January signing of Production Sharing Contracts for 44 blocks in Nigeria's 2005 Licensing Round, consistent with the history of such events, has been postponed once again.

The reason for the delay given by the Nigerian National Petroleum Corporation was the Muslim New Year festival, Eid-Al-Fitr.

The newspaper did not get any confirmation of the postponement, however, and said the delay is due to the NNPC's willingness to allow some bidders to pay the signature bonus fees thy were unable to pay by an earlier deadline, Dec. 15, 2005. Some 15 winners of the various blocks have been announced.

Here is the Guardian story:

Govt shifts oil block contract signing
By Taiwo Hassan
THERE were strong indications that the signing ceremony of the final draft of Production Sharing Contract (PSC) between the Federal Government, Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation (NNPC) and the winners of the 2005 oil licensing bid round may have been postponed.

A source in the Directorate of Petroleum Resources (DPR)disclosed to The Guardian, that the January 10, 2006 date earlier fixed for the event became unrealistic as it fell on a public holiday declared by government to commemorate the Muslim festival - el-id-kabir.

However, investigations by The Guardian, revealed that government may have granted a reprieve to some of the indigenous oil companies who failed to pay up their sign-on bonuses fees for the bidded oil blocs after the expiration of December 15, 2005 deadline.

Specifically, it was gathered that only 15 oil companies beat the deadline data given by the Ministry of Petroleum Resources.

It would be recalled that few days back, the Director, Directorate of Petroleum Resources (DPR), Mr. Tony Chukwueke had told journalists during a media briefing recently that arrangements have been concluded to hold the final draft of the PSC.