By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cut the bonuses payable by awardees in the 2022 and 2024 bid rounds to a maximum of $10 million for deepwater assets and $7 million for shallow water and onshore assets.
This followed the approval of its request for the reduction of signature bonuses for oil blocks by President Bola Tinubu, who also doubles as the Minister of Petroleum.
The Assistant Director of Multiclient Surveys/Regional Studies, NUPRC, Mr Ahmad Abdullahi, disclosed this on Tuesday in Lagos at the Pre-bid Conference for the 2024 Oil Licensing Round.
He spoke on behalf of the Chief Executive Officer of the Commission, Mr Gbenga Komolafe, and revealed that the commission had added more blocks to the 12 that are being auctioned, saying the number and details of the new blocks would be posted on the designated bid exercise portal later.
Mr Komolafe revealed that the commission, in partnership with its multi-client partners, had acquired more geological data resulting in the identification of more prospective blocks.
He said the newly identified blocks would be added to the pool of blocks originally scheduled for the bid exercise, and that their details would be made available on the bid round portal.
“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.
“To ensure the seamlessness of the Licensing Round exercise, the NUPRC, in collaboration with our National Data Repository and multi-client partners, guarantees access to comprehensive and high-quality geological data, facilitating informed decision-making and strategic investments”, he stated.
He assured industry players and investors present at the conference that the licensing round was expected to be a huge success for Nigeria and a big step towards growing the nation’s oil and gas reserves.
He noted that this would be done through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and end-to-end development across the value chain.
He also said the exercise was targeted at strengthening Nigeria’s energy security and economy, providing an occasion to gainfully engage the pool of competent companies in the oil and gas sector with a multiplier effect in employment opportunities, enabling transfer of technology, value optimisation from the petroleum assets and attracting investments.
On the global scale, he said the licensing round would be beneficial to all stakeholders and would in the long run contribute to long-term global energy sufficiency.