FG Unveils Plans To Increase Oil Blocs For 2024 Bid Round
By Frederick Wright
The Federal government has unveiled plans to increase the number of blocs to be auctioned in the 2024 oil licensing round, just as it assured of transparency in the bidding process.
Executive Secretary, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, who disclosed this at the Nigeria 2024 Oil Licensing Round Pre-bid Conference held in Lagos, yesterday, said the number and details of the oil bloc will be made available soon.
Recall that the NUPRC had earlier announced that 12 oil blocs would be auctioned in the 2024 oil bid round.
Speaking to the prospective investors in Lagos, Komolafe said the total no of blocs was 12 at the planning stage, but they were later able to gather data to offer more oil blocs, so it is increasing the number of blocs which he declined to reveal.
He said, “the commission, in partnership with its multi-client partners, has acquired more geological data resulting in the identification of more prospective
blocks. The newly identified blocks will be added to the pool of blocks originally scheduled for the bid exercise, and their details will be made available on the bid round portal.
“In addition to these blocks, the seven deep offshore blocks from the 2022 Mini-Bid Round Exercise which cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m shall
also be concluded along with this Licensing round,” he stated
Komolafe expressed the commission’s determination to conduct the bid round in a transparent manner in accordance with Section 76 (1) of the Petroleum Industry Act (PIA), saying, “We are not just a regulator, but a business enabler”.
He urged stakeholders to participate in the exercise, saying “It will enable us unprecedented opportunity to unlock Nigeria’s vast hydrocarbon potential, attract investment and propel our nation towards greater economic prosperity and shared prosperity,”
As at April this year, NUPRC had estimated that Nigeria’s oil reserve is at 37.5 billion barrels of oil and 209 trillion cubic feet (tcf) of gas.
Komolafe said each bloc has been chosen for its potential to bolster the nation’s reserve and economic posterity.
The NUPRC boss said the commission has issued a licensing round guideline and published the grand plan, declaring that the $100 million signature bonus is within the global standard.
Komolafe said the blocs on offer have extensive 2D and 3D seismic coverage including logic and analog data.
According to him, the objectives of the exercise are; to grow oil, gas reserves, to boost production, to enhance Nigerian content development and attract investment among others.
He told the prospective investors that notwithstanding the progression of energy transition, fossil fuel would continue to play a key role in the energy provider globally.
The NUPRC boss said there are plans to also conclude the 2022 bloc auction alongside the 2024 oil bid round. It had earlier offered seven oil blocs in 2022.
He claimed that the investors spend less in exploration and production to produce oil in Nigeria because of the depth of the wells and other favourable factors.
Noting that the bid round is scheduled to last for nine months, he said the details of the process would be made public on its official portal.
He is optimistic that the investors would should choose Nigeria because; the nation has a stable democracy; location is close to the coast line of 900 meters; ease of access to the Europe, American market; Attractive fiscal regime; effective regulatory regime; presence of IOCs with confidence in Nigeria; ease of discovery and high prospectivity, among others.
Executive Director, Schlumberger Nosa Omorodion said, “This is an opportunity for NUPRC to demonstrate that Nigeria is ready for business,”
He said integrity is important and ensuring that things are done according to the rules, adding that corporate governance and competency are key.
He said the new bloc that would be placed should be published and made open for perspectives investors to see.
Gas and Commercial Director, Shell E&P Africa, Hans Nijkamp, said: “Shell has been in Nigeria since 1937 and we are ready to stay for a very long time,”
Noting that the deepwater is the company’s ‘playground’ for the future, Hans said Nigeria is currently on track saying that the fiscal regulatory framework makes it look like Nigeria is already in the future.
He added that the company is determined to focus on oil and gas in the deepwater and taking the gas to the domestic market through the NLNG.
According to him, the PIA is a groundbreaking moment, as it has improved things significantly in the sector. Although, he urged the government to address the area of non-associated gas.
“The PIA and the Executive Order signed by Mr President together makes Nigeria more competitive,” he said.
