Financial Energy Review
………..by Ben Ndubuwa…..
As the federal government plans to include the seven deep offshore blocks from the 2022 Mini-Bid Round Exercise to the 2024 oil licensing round there are strong indication this plan may have arose the interest of the International Oil Companies (IOCs) to further invest more in Nigeria deep offshore instead of divesting their entire assets in Nigeria.
Executive Secretary, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, said in addition to the newly identified 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 be concluded along this year’s Licensing round.
In response the Gas and Commercial Director, Shell E&P Africa, Hans Nijkamp, said that the deepwater is the company’s ‘playground’ for the future.
Hans said Nigeria is currently on track saying that the fiscal regulatory framework makes it look like Nigeria is already in the future. He added that the company is determined to focus on oil and gas in the deepwater and taking the gas to the domestic market through the NLNG.
“The PIA and the Executive Order signed by Mr President together makes Nigeria more competitive,” he said.
Executive Director, Schlumberger Nosa Omorodion said, “This is an opportunity for NUPRC to demonstrate that Nigeria is ready for business,”
Omorodion said integrity is important and ensuring that things are done according to the rules, adding that corporate governance and competency are key.
The federal government said that it intend to increase the number of blocs to be auctioned in the 2024 oil licensing round, just as it assured of transparency in the bidding process.
Komolafe, who disclosed this at the Nigeria 2024 Oil Licensing Round Pre-bid Conference in Lagos, adding that details of the oil bloc will be made available soon.
NUPRC had earlier announced that 12 oil blocs would be auctioned in the 2024 oil bid round. Speaking to the prospective investors in Lagos, Komolafe said the total no of blocs was 12 at the planning stage, but they were later able to gather data to offer more oil blocs, so it is increasing the number of blocs which he declined to reveal. “The commission, in partnership with its multi-client partners, has acquired more geological data resulting in the identification of more prospective” he said.
