The Federal Government yesterday urged domestic and international investors to make use of the benevolent regulatory and fiscal system in the upstream petroleum industry through the seven new deep offshore oil blocs in order to increase oil and gas production and bring in money for the government.
Petroleum Prospecting Licences (PPL) 300, 301, 302, 303, 304, 305, and 306 deep offshore blocs, with a combined size of over 6700 km2 and ocean depths ranging from 1150 to 3100 meters, are the seven offshore blocs up for grabs.
The government also announced that, in an effort to direct the process and guarantee openness and transparency, it has hired Wood Mackenzie to lead the 2022–2023 oil bid round.
The Mini Bid Round is a market-driven initiative that is anticipated to perform better than the previous bid round, which took place in April 2007 and featured the offering of 45 blocks under a new regulatory framework (the Petroleum Act, 1969).
At the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) Pre-Bid Conference for 2022-2023 Mini Bid Round, which was held in Lagos, the following was the focus of the inventors’ discussions: “Growing upstream investment through licensing round the bid process and opportunities.”
Timpre Sylva, the minister of state for petroleum resources, claimed that hydrocarbons found in these seven offshore blocks will greatly increase the nation’s oil reserves and guarantee ongoing energy security.
One of the main responsibilities of the ministry of petroleum resources, according to Sylva, who was represented by Gabriel Tanimu Aduda, the permanent secretary of the department, is to produce results from the current 37–40 billion barrels of oil by 2025.
According to him, the PIA 2021 offered the legislative framework and support necessary to carry out this objective by establishing fiscal parameters that industry participants and operators could use to implement top-tier cutting-edge technologies for offshore exploration.
The minister stated that the pre-bid conference follows the recently completed ground-breaking ceremony for the prospecting oil licenses 809/810 PPL, providing yet another occasion to talk about the shift to clean energy and climate change.
“Nigeria has echoed its commitment to develop its abundant petroleum resources especially gas with proven reserves of over 200 trillion cubic feet, which require development with focused exploration. These reserves can go up to 600 trillion cubic feet.”
“This is one of the drivers of this pre-bid conference and we believe more open blocs will be on offer shortly for all investors, especially the deepwaters of Nigeria,” he said.
He claims that this will result in further expansion and improvement of the industry and even the creation of jobs for the young people.
The NUPRC’s chief executive, Gbenga Komolafe, stated that the bid rounds fall under the commission’s expanded legal and regulatory framework as outlined in section 73 of the PIA 2021, which aims to attract new investors and investments in the country’s upcoming oil and gas development.
He guaranteed that the entire bid process will be competitive, fair, and open in accordance with best practices in accordance with the provisions of the PIA 2021 and accompanying regulations.
“The blocks on offer have extensive 2D and 3D seasoning data coverage, including multiviewing and analogue data. Additionally, 3D legal serving blocks, reprocessed with start time migration of remarkable quality is also available to prospective bidders.”
“Furthermore, the mini bid exercise has been designed to attract competent investors from across the world, but local and foreign that have the capability and competence in operating the deep water environment,” he said.
He pointed out that the oil blocks will increase production, broaden opportunities for the declaration and development of gas, strengthen energy security and the economy, and offer chances to profitably engage the pool of qualified companies in the oil and gas sector for a softerening of employment opportunities.
He continued by saying that it would also facilitate the transfer of technology, increase the value of the nation of Nigeria’s petroleum assets, and draw in investments.
The current license auction, according to Rose Ndong, executive commissioner of exploration and acreage management at the NUPRC, is important because it is the first since 2007 and the passing of the Petroleum Industry Act (PIA) 2021.
According to her, the PIA opened up regulatory frameworks for open, transparent, and competitive processes aimed at generating value for Nigeria and all stakeholders.
The bid round, according to Ndong, is part of the commissions’ ongoing stakeholder engagement efforts, aims to implement these provisions, and is thus a fantastic opportunity for investors.
“This will be followed by successive bid rounds as provided for in the PIA as they are no longer marginal fields since the provisions have been made in the PIA.”
“The Nigeria deep water is one of the most prolific hyper carbon bases and has on record, above average theological chance of exploration success. We therefore look forward to working with the industry leaders to build on previous deep water experience and increase our national hydrocarbon reserves and production among other benefits,” she said.
