From Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday, said it had gotten permission from the presidency to market 12 new oil blocks.
This includes approval to remove all entry barriers to the licensing round including reducing the entry fee to the barest minimum.
Chief Executive Officer of NUPRC, Engr Gbenga Komolafe, disclosed this at the Miami International Roadshow for the 2024 licensing round hosted by the NUPRC in collaboration with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.
The twelve new blocks namely PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271 including 7 old blocks in the 2022 mini-bid are on offer by the NUPRC.
Komolafe said the 2024 block licensing round is scheduled to last for approximately nine months.
According to him, “Nigeria is endowed with 37.5 Billion barrels of Crude Oil and Condensate Reserves and 209.26 Trillion Cubic Feet of Natural Gas Reserves representing above 30% and 33% respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources. It is towards the exploitation and optimization of this abundant Hydrocarbon resources that Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC as the Industry Regulator to conduct bidding rounds for the award of PPLs and PMLs pursuant to the Act and applicable Regulations.
“ It is on this premise that the Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is pleased to announce the commencement of the 2024 Licensing Round at this Global event for participation by International Investors with financial and technical capacity.
“The exercise, which was initially announced on the 29th of April 2024, is a significant leap in our strategic hydrocarbons development initiative. This round introduces twelve meticulously selected blocks across diverse geological spectra — from the fertile onshore basins to the promising continental shelves and the untapped depths of our deep offshore territories. Each block has been chosen for its potential to bolster our national reserves and stimulate economic vitality.
“Ladies and Gentlemen, permit me to express that the NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.
underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.
“Distinguished Investors and Industry Captains and Stakeholders, the Licencing Round is indeed expected to be a huge success for Nigeria and is a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and end to end development across the value chain, strengthening energy security and economy, providing occasion to gainfully engage the pool of competent companies in the oil & gas sector with multiplier effect in employment opportunities, enabling transfer of technology, valorizing petroleum assets in the Nigerian Territory and attracting investments.
“In addition, the Licencing Round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).”