Nigeria Auctions 25 Oil Blocks To 17 Firms
. To Open Bid For Idle Blocks In 2025
By Abimbola Abdullah
Scores of oil firms converged on Lagos today (Wednesday) to bid for the 25 out of 31 oil blocks offered by the Federal Government, while a significant number of indigenous and international companies (17) emerged winners of some of the nation’s treasures.
The bid round was digitally implemented and transparently processed in the presences of hundreds of stakeholders and strictly monitored by the Nigerian Extractive Industry Transparency Initiative (NEITI), the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources.
The licensing round offered 24 carefully selected blocks spanning onshore, shallow water, and deep offshore terrains. Others are the seven deep offshore blocks carried over from the 2022 mini bid round, bringing the total to 31 blocks.
However, 6 oil blocks were returned back to the basket having not been bidded for.
Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe assured that these assets hold enormous potential for economic growth, energy security and technological advancement.
Komolafe stressed the need to prioritise transparency, accountability and decarbonisation measures in the management of the nation’s oil and gas sector.
Noting that Nigeria remains one of the most resource-rich nations in the world. With 209 trillion cubic feet of natural gas reserves and over 37 billion barrels of oil reserves, he said, “we have only just begun to scratch the surface of our hydrocarbon potential”.
The commercial bids were based on parameters prescribed and published on the bid portal, opened and processed through an electronic bidding process, Komolafe assured that the exercise was being conducted in line with international trade practices.
He disclosed that NUPRC would launch another Licensing Round in 2025, focusing on discovered but undeveloped fields (fallow assets) and prioritize natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals.
The NUPRC boss said the 2024 bid round comes with unique visions to position the industry to achieve far-reaching benefits. The visions include, one, investor-friendly tax, which reduces signature bonuses and the recent Presidential Executive Orders on non-associated gas development, optimised local content and the reduction of contracting costs and timelines among others.
Drawing from the lessons learned during the Marginal field bid round 2020, where the allocation of blocks to multiple companies presented certain challenges, he said the 2024 round prioritizes single applicants or well-established consortia to ensure greater efficiency and accountability.
According to him, the bid round was designed to foster collaboration between reputable local companies and their international counterparts, promoting local content development, creating employment opportunities, and facilitating technology transfer.
He assured that environmental and social considerations remain a top priority, as the commission would ensure that all exploration and production activities adhere to global best practices.
Following the success bid round, Komolafe said the next steps are: for successful bidders to receive their blocks within a few months, culminating in the execution and signing of contract documents.
The winners are expected to make payments in full prior to the granting of licenses or leases; while awarded blocks will undergo aggressive exploration and development in line with minimum work programme obligations.
He continued: “We remain committed to prioritizing capacity building and job creation for Nigerians, while delivering optimal value to both our local and foreign investors. We will continue to integrate sustainability measures into all Exploration and Production activities, safeguarding host communities and protecting the environment,”
Komolafe emphasized that Nigeria is now poised for aggressive exploration and development. With the sector transformation driven by the generous fiscal provisions of the PIA and the Presidential Executive Orders.
Noting that oil will remain a dominant fuel globally for years to come, notwithstanding the emergence of clean energy, he said, “The Organisation of Petroleum Exporting Countries (OPEC), the International Energy Agency (IEA), and other energy outlooks indicate that fossil fuel will continue to dominate the global energy mix with projections that oil and gas will remain the backbone of the global energy mix in the medium to long term, driven by population growth, urbanization, and economic expansion in developing economies.”
The winners that emerged after a competitive bidding are: Sifax and Royal Gate Consortium and Oceangate Engineering Oil and Gas Limited, which won the bids for PPL 300-DO and PPL 302-DO respectively having emerged as the sole bidders in the categories.
For PPL 303-DO, two bidders, MRS Oil and Gas Company Limited and NNPC Exploration and Production Limited qualified and had a tie in the bidding, but MRS Oil and Gas later emerged the winner.
In PPL 304-DO, Homeland Integrated Offshore Services Limited edged out Sifax and Royal Gate Consortium to emerge the winner. Hamilcar Oil and Gas Consortium won the bid for PPL 305-DO ahead of NNPC E&P.
BISWAL oil and gas Limited and won in the PPL 306-DO bid, beating NNPC E&P Limited.
Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited won the PPL 270, Sahara Deepwater also won the PPL 271 License. Totalenergies with a 126 points emerged winner in the PPL 2000/2001 beating Star Deepwater Petroleum Limited who scored 125 points.
For PPLs 2002, 2003, 2004, 2005, and 2006, BISWAL Oil and Gas; First E & P Development Company; Dewayles International Limited; Applefield Oil and gas limited and First E&P Development Company Limited, respectively won thee licences having being the sole bidders in their respective categories.
Similarly, PPLs 2007, 2008 and 3007 went to R28 Holdings Limited, Tulcan Energy E & P Company Limited and Oceangate Engineering Oil and Gas limited.
Broron Energy Limited won PPL 2009, while PPLs 3011, 3012, 3015, 3016 and 3017 all won by sole bidders which are: R28 Holdings,Tulcan Energy E &P Company Limited, Panout Oil and Gas, Hakilat Oil and gas consortium Ltd and Applefield Oil and gas respectively.
