By Progress Godfrey, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that only investors with financial capacity and technical competence will be eligible to bid for oil blocks in the 2024 round.
NUPRC Chief Executive, Gbenga Komolafe, made the statement at the 2024 Pre-bid conference in Lagos on Tuesday, themed “Unveiling Nigerian Energy Development Strategies: 2024 Licensing Round.”
Komolafe revealed that over 90% of oil fields awarded to investors in previous bid rounds remained inactive, failing to yield meaningful output, and are now seeking renewal.
“The 2024 bidding round is meant for investors with financial capacity and technical competence.
“In the past, the award of oil blocks culminated in the non-development of over 90 per cent of marginal fields, thus denying the federal government of reaping the intended benefits. This is because such awards were not based on technical and financial considerations,” he said
SummitPost recalls that President Bola Tinubu signed an Executive Order to introduce fiscal incentives for oil and gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.
Komolafe explained that the Order aims to transform Nigeria’s oil and gas industry into a more efficient and attractive destination for investment.
He added that Nigeria offers a favourable investment climate with a stable and law-driven governance framework, making it an appealing destination for investors.
He further explained that the exercise aims to expand oil and gas reserves, and increase production output for economic growth and development.
Komolafe urged stakeholders to participate in the exercise, assuring a level playing field in line with the Petroleum Industry Act (PIA).
“We are not just regulators, but business enablers. I urge stakeholders to participate in this exercise, which will enable us to unlock Nigeria’s vast hydrocarbon potential, attract investment, and propel our nation towards greater economic and shared prosperity.”
According to him, as of April this year, Nigeria’s oil reserves were estimated at 37.5 billion barrels of crude oil and condensate, alongside 209.26 trillion cubic feet of natural gas reserves.
Komolafe highlighted the Commission’s efforts to attract investors, including engagement in roadshows in key cities like Houston, Miami, London, and Paris to showcase assets and attract the right investors.
Although he didn’t disclose the exact number of oil blocks up for bidding, he indicated that the initial count of 12 blocks identified during the planning stage has since increased, adding that “the details would be made available on the portal.”
He emphasized to potential investors that despite the advancements in energy transition, fossil fuels remain a vital component of the global energy landscape.
He highlighted that investing in Nigeria offers a cost advantage, as the shallow wells require less expenditure on exploration and production, making it a more economical option for oil production.
The bid round, he said, will span nine months, with all relevant details accessible on the portal.