Lagos — FEDERAL Government targets a gross earning of about $20.55 billion (or N2.672 trillion) from concession of 10 oil blocs in the 2006 mini bid round to hold on Thursday.

The blocs located in the deep water Gulf of Guinea will be awarded to bidders with downstream investment packages that will fast-track the nation's economic recovery.

Director of Department of Petroleum Resources (DPR), Mr Tony Chukwueke, told Daily Champion on Sunday that the exercise would target $550 million (N71.5 billion) signature bonus from the blocs while each of them is tied to strategic downstream investment of not less than $2.0 billion (260 billion).

DPR is the nation's sole regulatory agency in the oil industry and also the administrator of oil blocs.

The blocs put on offer include oil prospecting leases (OPLs) 289,233,281 and 471 whose owners in the 2005 bid round defaulted. They were subsequently retrieved by the government.

Others are OPLs 209, 211, 212, 213, 216, 217, 218, 220 and 246 being 50 per cent of the blocks relinquished by the operators of the 1993 and 1998 production sharing contracts (PSCs) through mandatory adherence to existing regulation.

Already, 11 bidders are queueing for the blocks which are advertised to hold immense hydrocarbon potentials.

The bidders listed as strategic investors, Daily Champion gathered, include the ONGC Mittal of India, Global Steel Holding, INC Natural Resource Exploration, China National Petroleum Corporation (CNPC) and Cleanwaters Consortium.

Others are NAOC/Lotus Consortium, ONGC Videsh Consortium, BG/Sahara Consortium, Niger Delta United Oil Company, and CPC Starcrest Energy.

DPR said the technical committee on the exercise would adhere to recommendations made by the 2005 Bid Round International Review Panel while the 2005 PSC would also be adopted.

According to an information memorandum on the exercise, bidders are allowed to pick local content vehicle of their choice for ease of due diligence.

A pre-conference has been drawn up for the participants and the technical committee to determine the work programme commitment, cost oil and work schedule allocation to the LCV in various terrains.

Although bidders are to be allowed multiple applications but participating non refundable fees shall be charged on individual blocks, DPR specified.

The chargeable fees include a $10,000 (N1.3 million) application fee, $25,000 (N3.25 million) data prying fee, $10,000 for bid processing, $50,000 (N6.5 million) for seismic data lease and another $50,000 for reports data lease.

DPR stated that rights of first refusal shall be granted all participants on specific blocks.