By Milcah Tanimu
The Federal Government has announced the addition of 17 deep offshore oil blocks to the 2024 Licensing Round for oil fields in Nigeria. This announcement comes after previously offering deep offshore blocks in the 2022/23 mini-bid round, and includes additional blocks across onshore, continental shelf, and deep offshore terrains for the 2024 Licensing Round.
On May 8, 2024, the government invited investors to bid for 12 oil blocks and seven deep offshore assets in the 2024 marginal fields bid round. This number was subsequently increased, as announced by the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, at a pre-bid conference in Lagos.
Komolafe stated that the commission’s commitment to maximizing the value of Nigeria’s oil and gas reserves and increasing production has led to the acquisition of more data to encourage further investment in the upstream sector. This effort has resulted in the addition of 17 new deep offshore blocks to the 2024 Licensing Round.
“In pursuit of the commission’s commitment to derive value from the country’s abundant oil and gas reserves and increase production, the commission has been working assiduously with multi-client companies to undertake more exploratory activities to acquire more data to foster and encourage further investment in the Nigerian upstream sector,” Komolafe said.
He explained that bidders have the option to apply for some assets as clusters or single units, and directed them to the FAQs section of the 2022/23 and 2024 Licensing Round portals for clarification or to contact the upstream regulatory agency.
To accommodate the expanded opportunities, the 2024 Licensing Round schedule has been amended. The registration and submission of pre-qualification documents deadline has been extended to July 5, 2024. The data access, purchase, evaluation, and bid preparation and submission will start on July 8, 2024, and close on November 29, 2024.
President Bola Tinubu, acting as petroleum minister, has approved attractive fiscal regimes and minimized entry fees, ensuring that the same bid criteria and uniform signature bonus criteria are applicable for both licensing rounds. This move is intended to promote transparency and provide a level playing ground for all bidders.
The NUPRC has reopened the registration phase of the 2022/23 Mini Bid Round to new applicants, allowing all interested investors to participate under the new, more attractive terms. Pre-qualified applicants from the 2022/23 Mini Bid Round do not need to re-qualify, though they may resubmit commercial bids and revise bid bonds to adapt to the new criteria.
All blocks in the 2022/23 and 2024 Licensing Rounds are now available to interested investors through the NUPRC’s dedicated websites. This initiative aims to ensure equitable and fair access to Nigeria’s oil assets for all investors.
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