Numerous indigenous and international oil companies have shown interest in bidding for the 12 onshore and seven deep offshore blocks offered for sale by the Federal Government. These companies are currently reviewing the requirements, including technical competence and financial capacity, set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for qualification in the bid.
Members of the Petroleum Technology Association of Nigeria (PETAN), representing Nigerian Indigenous Technical Oilfield Service Companies, have expressed their intent to bid. According to PETAN's chairman, Engr. Wole Ogunsanya, they are assessing the available fields to determine their viability for their members.
The 12 Petroleum Prospecting Leases (PPLs) and the Petroleum Mining Lease (PML) 51, along with the seven Deep Offshore Blocks, are part of the offerings. Top company officials, while remaining anonymous, have disclosed that they are working with consultants, both local and international, to prepare for the bidding process.
NUPRC's CEO, Engr. Gbenga Komolafe, confirmed the high interest from potential bidders, noting that the ongoing Offshore Technology Conference (OTC) 2024 provides an excellent opportunity to attract investors for the oil blocks. He emphasized the government's commitment to creating a conducive environment for investment in the oil and gas sector, citing recent executive orders aimed at enhancing business in the sector.
The bid process, reformed to focus on technical and financial capacity, aims to encourage hydrocarbon resources development and optimization. The reduction in front entry Signature Bonus, now replaced with Production Bonus, is seen as a significant change to attract more investors. The assets being considered have contributed significantly to Nigeria's oil and gas output, with estimated total reserves making a substantial contribution to the nation's hydrocarbon resources.
The OTC 2024, attended by 31,000 energy professionals from various countries, including Nigeria, is expected to provide a platform for showcasing Nigeria's potential to foreign investors, with key officials from the petroleum sector in attendance.
