A fresh bid for three bitumen blocks in the country would hold between August and December this year, the Federal Government announced on Monday.

Sarafa Isola, Minister of Mines and Steel Development

The Minister of Mines and Steel Development, Chief Sarafa Isola, who disclosed this while inaugurating the committee on bitumen block bidding in Abuja, explained that the bitumen deposits which are found around Edo, Ondo, Ogun and Lagos states, had been collapsed into three blocks, A, B and C.

He explained that the bitumen bid round, conducted by Bureau of Public Enterprises in 2006, ran into a snag, which necessitated a fresh bid.

Isola said, “The reason for delaying the inauguration of this committee was to free the process from encumbrances.

“Gateway Company won block one and it paid 10 per cent deposit but was not able to pay the balance of 90 per cent within a month. After 18 months and it still did not pay the balance and several reminders were written, the National Council on Privatisation took a decision and its payment was refunded.”

He added, “The other block was won by CGC and Synopec. Their 10 per cent deposit has also been repaid.

“This process was completed in compliance with the present administration’s commitment to the rule of law. So, the coast is now clear to inaugurate this committee to begin a fresh bidding exercise.”

The minister recalled that the bitumen blocks in the country were at various times put at 10, six and one, but the present administration took expert advice and decided to have only three blocks, A,B, C.

He stated that the committee on bitumen block bidding, which would be chaired by the Director-General of the Nigerian Geological Survey Agency, Prof Siyan Malomo, would continue to function until the Federal Government was able to hand over the blocks to genuine investors.

Isola also listed the terms of reference of the committee to include coordinating the process of the sale of bitumen blocks in line with the Mineral and Mining Act 2007, including advertisement for expression of interest by interested companies and developing a marking scheme for the assessment of expression of interest and mark the document submitted.

The terms of reference also included “Preparing a report on the assessment of expression of interest with recommendations indicating pre-qualified companies. To develop a marking for bid documents based on set criteria and submit a report on the entire process with recommendations.”

The minister also charged the committee to ensure that pre-qualified possessed the required technical capacity, which included expertise available to bidders anywhere in the world.

He said, “People who are not known in this business should not come and take our blocks. They must have proven financial ability to develop the blocks. Out of our mineral resources, bitumen is one that requires the most capital intensive for its development. Only people with proven availability of financial ability should be given the opportunity and of course, they must show minimum work requirement.

“The new Mining and Mineral Act emphasised use it or lose it principle. The minimum work programme must contain exploration work programme that is expected. After submitting it, bidders will be expected to show their quarterly programme. They will be expected to submit half yearly reports in compliance with our mining regulation on which our inspectors will carry our inspections.

And where we find out that developments are not in line with submitted minimum work programme, the licences will be revoked and given to people who are ready to develop the sector.”

Other members of the committee include the Director of Mines Inspectorate, Mr. A.Y Ibrahim, Director Mining Cadastre Office, Mr. Sheik Goni and the President Chartered Institute of Bankers and Managing Director, Inter Continental Bank, Mr. Erasmus Akingbola.

Other members include the Legal Director of the Ministry, Mrs. Ebuk Ekpo, Special Adviser Technical to the minister, Mr. Segun Aileru and a businessman, Retired Colonel Mahmud Santuraki.