2024 Bid Round: NUPRC Offers 12 Oil Blocks to Investors

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The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, yesterday, disclosed that it has commenced the process for the 2024 oil bid round with 12 oil blocks on offer and seven deep offshore blocks from last year’s bid round.

 

Engr. Gbenga Komolafe, the Commission’s Chief Executive, who disclosed this at the inaugural NEITI House Dialogue in Abuja, said the process will be concluded by January next year.

 

The new green field oil blocks on offer include six acreages located on continental shelf, four deep offshore blocks and two onshore blocks in the Niger Delta.

Engr. Komolafe explained that the Commission has put in place regulations to create a conducive investment environment by ensuring regulatory certainty, vacating entry barriers and promoting global competitiveness.

He said: “The licencing round that we are putting in place is designed to enhance the quality data set and it is going to be conducted in a fair, and competitive bidding process in a non-discriminating manner”.

He noted that some of the criteria required for acquiring the blocks include technical competence, financial capacity and viability.

He also disclosed that the Commission generated N4.344 trillion in revenues in 2023, a rise of 15 per cent from N3.78 trillion generated in 2022.

Meanwhile, the NUPRC has set out guidelines for the proposed divestment of Shell Petroleum Development Company of Nigerian Limited (SPDC) assets through a sale by its shareholders of all the issued shares of SPDC to Renaissance Africa Energy Company Limited.

The SPDC JV assets are currently operated by the SPDC on behalf of its Joint Venture (JV) partners namely NNPCL Limited and Total Upstream Nigeria Limited, Nigeria Agip Oil Company and SPDC.

Speaking at a divestment workshop in Abuja on Monday, Engr Komolafe said the SPDC JV OMLs were “originally awarded as Oil Exploration Licence -1(OEL-1) on 1 January 1949 covering the whole of southern Nigeria and Cameroon. Ultimately, the assets were converted to OMLs on 1 April 1962 and subsequently renewed in 2014 and 2018 for 20 years.

“The assets being considered to have an estimated total reserve of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of nonassociated gas. This makes a significant contribution to the nation’s hydrocarbon resources. Additionally, these assets hold P3 reserves estimated at 2.85 billion barrels of oil, 850.85 million barrels of condensate, 11.3 trillion cubic feet of associated gas and 12.26 trillion cubic feet of Non-Associated Gas”.

The guidelines for the divestment include technical capacity, financial viability, legality, decommissioning plan, decommissioning and abandonment plan, host community trust fund and environmental remediation fund.