JUST IN: Buhari, NUPRC Promise Transparency In Licensing Bid For Seven Oil Wells

Nigeria’s moves to develop its oil and gas resources has received new boost as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has promised investors a transparent and credible 2022/2023 deep offshore mini-bid round exercise.

The promise was made on Monday during the mini-bid conference with theme, ‘Growing Upstream Investment in Nigeria through Licensing Round: The Bid Process and Opportunities,’ monitored by THE WHISTLER.

The NUPRC had on 22nd of December 2022 announced the commencement of the offshore licensing mini-bid round.

The bid round portal was officially opened on 3rd January 2023 for investors.

The mini-bid round presents seven blocks on offer to both domestic and foreign investors.

The seven deep offshore open blocks are the (PPL-300-DO, PPL-301-DO, PPL-302-DO, PPL-303-DO, PPL-304-DO, PPL-305-DO & PPL-306-DO).

The seven oil blocks cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m.

The exercise is scheduled to last for four months along following processes of registration; data prying/purchase; Technical Bid Submission/Presentation; Technical Bid Evaluation and Commercial Bid Conference.

The Permanent Secretary of the Ministry of Petroleum Resources, Ambassador Gabriel Tanimu Aduda who represented the Minister of Petroleum, Muhammadu Buhari said the ministry has the mandate to increase Nigeria’s oil reserves from 36bn barrels to 40bn barrels.

Buhari believes expanding the reserves would boost Federal Government revenues.

Buhari said the oil well bid will guarantee Nigeria’s “push for energy security and access for our people from North, South, East and West.”

The petroleum minister said the bid is in line with FG’s efforts to end energy poverty, entrenching shared prosperity and promoting sustainable development.

“This is the motivation that sustains the quest for reform in the petroleum sector. This culminated in the signing and passing into law of the landmark Petroleum Industry Act 2021. One of the key mandates of the Ministry of Petroleum Resources is to grow reserves from the current 37bn barrels of oil to 40bn barrels of oil by 2025,” Buhari added.

Buhari said the bid would have witnessed low investors turn out if the PIA was not passed into law.

“The PIA 2021 provided the regulatory support and framework for achieving this mandate by providing fiscal terms which industry players and operators can utilise and deploy world class cutting-edge technologies to derisk exploration in the deep offshore,” he added.

He said the event is coming on the heels of the concluded ground breaking ceremony of the Kolmani Oil Prospective Licenses (OPL 809 and 810) now Petroleum Prospective License (ppl 809 and 810)

The Chief Executive Officer of NUPRC, Gbenga Komolafe, disclosed at the mini-bid conference held in Abuja that the development is a major leap for the new phase oil and gas exploration in Africa’s biggest market.

The NUPRC boss said the bid is within its legal purview as enshrined in Section 73 of the Petroleum Industry Act of 2021.

He said, “The Mini Bid Round is a market-driven programme expected to outperform the last bid round which held in April 2007 during which a total of forty-five (45) blocks were put on offer under a different regulatory regime (the Petroleum Act, 1969).

Komolafe explained that applicants may express interest as an individual company or consortium.

Komolafe said part of the criteria is that awardees must be duly registered in Nigeria under the Companies and Allied Matters Act (CAMA).

He noted the “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 development, strengthening energy security and economy, providing the opportunity to gainfully engage the pool of competent companies in the oil & gas sector resulting in employment opportunities, enabling transfer of technology, valorizing petroleum assets in the Nigerian Territory and attracting investments.

“The Mini Bid 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).

“The process will, in addition to technical and commercial considerations, pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall Environmental, Social and Governance (ESG) considerations.

“World-renowned energy consultants Wood Mackenzie to ensure that Nigerian petroleum upstream regulations are in line with international best practices which will form the basis for regulating the awardees of the seven (7) deep offshore blocks offered in the 2022/2023 mini bid round exercise.”