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By Adewale Sanyaolu
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said over 90 per cent of oil fields allocated to investors in past oil bid rounds remained dormant.
Commission Chief Executive (CCE) of NUPRC, Mr.Gbenga Komolafe, stated this on Tuesday at the 2024 Pre Oil Bid- round Conference with the theme “Unveiling Nigerian Energy Development Strategies: 2024 Licensing Round” held in Lagos, yesterday.
“In the past, the award of oil blocks culminated in the non-development of over 90 per cent of marginal fields, thus denying the federal government of reaping the intended benefits because such awards were not based on technical and financial considerations,” he said.
Going forward into the 2024 oil bid round, Komolafe said only investors with strong financial and technical capacity would be given consideration.
He 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).
Komolafe said that Nigeria is an attractive jurisdiction for investment, adding that the country has a stable regime that is driven by laws.
“Nigeria is a stable political environment that encourages businesses in a conducive atmosphere. The 2024 bid round are meant for investors with financial capacity and technical competence.”
The NUPRC boss said that the recent Presidential Executive Orders issued, were aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector.
He said that it would culminate in further increasing the nation’s oil and gas reserves.
He added that as at April this year, estimates showed that Nigeria’s oil reserve was at 37.5 Billion barrels of Crude Oil and Condensate Reserves and 209.26 Trillion Cubic Feet of Natural Gas Reserves.
He said that the commission had engaged in several roadshows held in Houston, Miami, London, Paris among others in a bid to attract the right investors for the field assets
“We are not just a regulator, but a business enabler. I urge stakeholders to participate in the exercise because this will enable us an unprecedented opportunity to unlock Nigeria’s vast hydrocarbon potential, attract investment and propel our nation towards greater economic and shared prosperity,” he stated.
He said each block has been chosen for its potential to bolster the nation’s oil and gas reserves while propelling economic growth.
Komolafe who did not disclose the total number of oil blocks on offer for the bidding exercise said the initial number of oil blocks was 12 at the planning stage but data later gathered shows there are more blocks in the basket.
He said, “details would be made available on the portal.”
Komolafe said the oil blocks 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 the energy transition, fossil fuel will continue to play a key role in the energy provider globally.
The NUPRC boss said there are plans to also conclude the 2022 oil block auction alongside the 2024 oil bid round.
He claimed that the investors spend less in exploration and production to produce oil in Nigeria because of the depth of the wells.
According to him, the bid round is scheduled to last for nine months, with details on the portal.
He stated that Nigeria has ease of access to the European, and American markets; an attractive fiscal regime; an effective regulatory regime; the presence of IOCs with confidence in Nigeria; and ease of discovery and high prospects, among others.
Also speaking, the Executive Director, Schlumberger, Mr. 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 remains crucial, adding that corporate governance and competency are key.
He said the new blocks on offer should be published and made open for perspectives investors to see.
The Gas and Commercial Director, Shell E&P Africa, Mr.Hans Nijkamp, said Shell has been in Nigeria since 1937 and it’s ready to stay for a very long time.
He noted that the deepwater is the company’s ‘playground’ for the future, stressing that Nigeria is currently on track because the fiscal regulatory framework makes it look like Nigeria is already in the future.
