The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe has stated that the current oil block bid for 2024 is meant for investors with financial capacity and technical competence.
Mr. Gbenga Komolafe, the Chief Executive of the commission, provided assurances during the 2024 Pre-bid conference in Lagos on Tuesday.
The News Agency of Nigeria (NAN) reports that the conference’s theme is “Unveiling Nigerian Energy Development Strategies: 2024 Licensing Round.”
He stated that the bidding process would adhere to Section 76 (1) of the Petroleum Industry Act (PIA). Komolafe emphasized that Nigeria is an attractive destination for investment, supported by a stable regime governed by laws.
He also explained that Nigeria offers a stable political environment conducive to business activities.
He stated, “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,”
Recent Presidential orders
The NUPRC Chief stated that the recent Presidential Executive Orders were designed to enhance the efficiency and appeal of Nigeria’s oil and gas sector. He noted that these measures would contribute to further increasing the nation’s oil and gas reserves.
As of April, Nigeria’s oil reserves were estimated at 37.5 billion barrels of crude oil and condensate, along with 209.26 trillion cubic feet of natural gas.
He also mentioned that the commission had conducted several roadshows in cities such as Houston, Miami, London, and Paris, among others.
The NUPRC Chief noted that the commission had issued a guideline for the licensing round and published the grand plan. Komolafe noted that the blocks on offer have extensive 2D and 3D seismic coverage, including logic and analogue data.
Objectives of the exercise
He outlined the objectives of the exercise, which include growing oil and gas reserves, boosting production, enhancing Nigerian content development, and attracting investment, among other goals.
Addressing prospective investors, Komolafe emphasized that despite the progression of the energy transition, fossil fuels would continue to play a crucial role in the global energy landscape.
He also stated that there were plans to conclude the 2022 block auctions alongside the 2024 oil bid round, noting that seven oil blocks were offered in 2022.
Komolafe highlighted that investors spend less on exploration and production in Nigeria due to the shallowness of the wells.
He mentioned that the bid round is scheduled to last for nine months, with details available on the portal.
Expressing optimism, he encouraged investors to choose Nigeria, emphasizing the nation’s stable democracy and strategic location close to a 900-meter coastline.