The Nigerians Upstream Regulatory Commission (NPRC) has said that the entry fees and bonuses for its seven deep offshore assets and 24 acreages are globally competitive.
The Commission Chief Executive, Gbenga Komolafe, disclosed these at an investors call during the Africa Oil Week Conference in Cape Town, South Africa.
Komolafe announced several oil and gas investment opportunities in Nigeria, saying that the 2024 licensing round would be a game changer for the country.
Nigeria has 209.26 trillion cubic feet (TCF) of natural gas reserves and 37.5 billion barrels of crude oil reserves, according to the NUPRC.
The country also has an oil production capacity of 2.4 million barrels per day (bopd).
To harness the country’s resource deposit in other to create prosperity for Nigerians, the NUPRC boss said the licensing round features more than 31 oil blocks adding it is supported by a strong regulatory framework under the Petroleum Industry Act (PIA).
Komolafe said, “31 blocks will be available, including seven deep offshore assets from the ongoing mini-bid round and 24 acreages for bidding this year.
“These blocks are spread across key terrains such as the continental shelf and the Niger Delta, with notable offerings such as PPL 300-CS and PPL 301-CS in the Benin Basin, as well as various Niger Delta deep-water assets like PPL 3017, which already have existing discoveries.”
The CCE explained that the licensing round offers entry fees and bonuses that are competitive compared to other countries that are competing for investors.
He said, “For example, signature bonuses for blocks in the Middle East and North Africa can reach $10m, while Southeast Asia’s signature bonuses typically range from $1m to $3m.
“Nigeria’s incentives and reduced front-loaded fees are expected to attract a broad range of investors.
“Nigeria’s oil and gas future is also tied to the development of key matured fields, which offer substantial opportunities for growth. These include OML 145 – Nsiko Field, OML 118 – Bonga Southwest/Aparo Field, and OML 130 – Egina South Field.”
He stated that these fields are essential to Nigeria’s long-term strategy for enhancing production capacity and maximizing reserves.
Komolafe urged investors to seize the opportunity presented by the 2024 Licensing Round and invest in Nigeria, a nation with over 217 million people and significant proven oil and gas reserves.
He added, “It offers benefits such as regulatory certainty, attractive fiscal regimes, ease of doing business and reduced entry barriers.
“We have issued a licensing round guideline and published a licensing round plan for the blocks on offer. The licensing round features several blocks selected across varied geological terrains — from the promising onshore basins to the lucrative continental shelves and the unexploited depths of our deep offshore basins.”
The CCE explained the geographical advantages that facilitate oil and gas production and export, which includes Nigeria’s population of 207 million and 853 km of coastline.
“With 49 producing companies, 251 fields in production, 2,717 Oil-producing strings and 125 gas wells already operational, the sector is primed for expansion,” Komolafe added.
He said expanding the oil and gas sector has become easier with the Presidential Executive Orders and industry reforms.
He said, “These include Executive Order No. 40, which provides a range of tax incentives, exemptions and remissions to encourage investments, particularly in deep-water oil and gas projects and Executive Order No. 41, which focuses on strengthening local content compliance while ensuring that the Nigerian Oil and Gas Industry Content Development Act of 2010 is balanced to attract foreign direct investment without hindering development.
“Executive Order No. 42, which aims to reduce contracting costs and streamline timelines, making it easier for investors to enter and operate in the Nigerian market.”