HOUSTON: Nigeria has officially opened licensing rounds for its 12 new oil blocks and 7 old blocks, in what appears as a massive move to harness the country’s hydrocarbon resources to fund its energy transition plan.
The Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Chief Executive, Gbenga Komolafe declared the bidding rounds open on Tuesday at the side event of the Offshore Technology Conference (OTC) in Houston, Texas USA.
The launch took place at the Wyndham Hotel, in Houston. The licensing round will last for nine months, the NUPRC Boss said.
This is the first licensing round since the new administration took over in 2023. The administration has unlocked the potential of the Nigerian oil and gas sector for investment opportunities.
For the new licensing round, the NUPRC is keen on ensuring that successful companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle.
The NUPRC boss said, “12 acreages to be offered. Closed Bid based on a fair, transparent, and competitive bidding process in line with section 73 of the PIA. The federal government and the Nigerian Petroleum Regulatory Commission are pleased to announce the commencement of the 2024 licensing round at this global event for international investors with financial and technical capacity.”
The exercise was initially announced on April 24, 2024. According to Komolafe, the exercise is a significant leap in harnessing Nigeria’s strategic hydrocarbon initiatives.
The blocks were selected from the onshore basins, continental shelves and the deep onshore territories.
Komolafe said, “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.
“The NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing rounds in a fair competitive and transparent manner and ensuring a level playing field for both indigenous and international investors.
“Our approach is enshrined in the PIA which ensures compliance with best practices to boost investors’ confidence. In keeping with the provisions of PIA, the commission has issued a licensing round guideline and published a licensing round plan for the 12 blocks.”
The 12 new blocks are PPL 300 (continental shelf), 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
He said, “In addition to these blocks, the seven deep offshore blocks from the 2022 Mini-Bid Round Exercise which cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m shall also be concluded along with this Licensing round.”
He said the blocks on offers have detailed 2D and 3D seismic data coverage.
Komolafe said, “The licensing rounds represent an opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Nigerian Extractive Transparency Initiative.
“On the global scale, the Licensing Round will no doubt be beneficial to all stakeholders and will in the long run contribute to long-term global energy sufficiency. Interestingly, the Licensing Round process was formulated in cognisance of global energy sustainability goals.
“The implementation 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. “
He said as a responsible regulator, the Commission would continue to review the prevailing global investment climate to ensure that the entry fees associated with all licensing rounds are competitive in the context of global realities.
“Broadly speaking, competitive entry fees that are responsive to prevailing realities will be adopted in the 2024 Block licensing rounds. Also, considerations for the commerciality of projects will be made on a case-by case basis for the determination of appropriate entry fees,” he added.