Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a licensing round guideline and published a licensing round plan for a total of seven deep offshore open blocks (PPL-300-DO, PPL-301-DO, PPL-302-DO, PPL-303-DO, PPL-304-DO, PPL-305-DO & PPL-306-DO).
This was disclosed by the Commission’s Chief Executive, Engr Gbenga Komolafe at the pre-bid conference for the 2022/2023 Licensing Round of Petroleum Prospecting Licences in Deep Offshore Nigeria on Monday.
Komolafe said the seven Deep Offshore blocks, covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m, were on offer in the mini bid round.
He said seven Deep Offshore blocks were intended to be the first in a series of bid rounds aimed at further development of the nation’s prospective petroleum basins.
He said the bid rounds were within the context of enhanced legal and regulatory frameworks, as enshrined in Section 73 of the PIA, which seeks to encourage new investors and investments into the next phase of oil and gas exploration in Nigeria.
“Let me clearly indicate that this pre-bid conference is a clarion call to technically and financially capable local and foreign investors to invest and take advantage of the generous fiscal and regulatory regime in the Nigerian upstream petroleum sector.
“The Mini Bid Round is a market-driven programme expected to outperform the last bid round which held in April 2007 during which a total of forty-five (45) blocks were put on offer under a different regulatory regime (the Petroleum Act, 1969).
“In line with the provisions of the PIA, the Mini Bid Round will be managed by the NUPRC, supported by its National Data Repository (NDR) and multi-client partners underpinned by high-quality datasets.
“The blocks on offer have extensive 2D and 3D seismic data coverage, including multi-beam and analog data. Additionally, a 3D MegaSurveyPlus reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders. Links to all data and information including the guidelines for the award and operations of Petroleum Prospecting Licenses (PPL) in deep offshore Nigeria, alongside other vital information that provide details regarding the blocks on offer and the procedural stages of the bid process, can be accessed via the dedicated NUPRC portal (https://br.nuprc.gov.ng).
“The exercise is scheduled to last for approximately four (4) months along the following processes: Registration & Pre-Qualification, Data Prying/Purchase, Technical Bid Submission/Presentation, Technical Bid Evaluation and Commercial Bid Conference.
“As part of the bid process, we have announced the commencement and launched the bid round portal which was officially opened on 3rd January 2023. We have also provided an official email address, phone numbers and dedicated support line to guide applicants through the Licensing Round process,” he said.
Komolafe assured stakeholders that the entire bid process pursuant to the provisions of the PIA 2021 and attendant regulations would be fair, transparent, and competitive in line with best practices.
“Furthermore, the mini bid exercise has been designed to attract competent investors from across the world, both local and foreign, that have the capability and competence in operating in deep water environment.
“However, all awardees must be duly registered in Nigeria under the Companies and Allied Matters Act (CAMA). Applicants may participate either as an individual company, or as a consortium.”
He said the Mini Bid Round was indeed expected to be a huge success for Nigeria and was a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and development, strengthening energy security and economy, providing the opportunity to gainfully engage the pool of competent companies in the oil and gas sector resulting in employment opportunities, enabling transfer of technology, valorizing petroleum assets in the Nigerian Territory and attracting investments.
Komolafe added that the Mini Bid Round presented “us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).”
He said the Licensing Round would no doubt be gainful to all stakeholders and would in the long run contribute to long-term global energy sufficiency.
“Interestingly, the Licensing Round process was formulated in cognizance of global sustainability goals.
“The process, will in addition, to technical and commercial considerations, pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall Environmental, Social and Governance (ESG) considerations.
“The oil and gas industry in Nigeria has embraced the reality of energy transition and is taking strategic position to leverage on the opportunities presented by the unfolding era. As a Regulatory Commission we have taken deliberate steps in this regard including the recent issuance of Guidelines for Management of Fugitive Methane and Greenhouse Gases Emissions in the Upstream Oil and Gas Operations in Nigeria during the COP27 in Egypt in a manner that attracted wide international commendation for Nigeria.
“However, it is worthy to recognize that recent events around the globe indicate that fossil fuels will continue to be a core part of the global energy mix well into the future, even beyond the 2050 targets for achieving net-zero carbon emissions that has been set by most countries.
“The recent increase in the price of energy, mostly occasioned by the conflict between Russia and Ukraine and the ensuing energy disruption, have reawakened the call for geopolitical energy security and sustainability,” Komolafe said.
He re-invited investors from across the world with capability and experience in deep water operations to embrace the generous fiscal provisions of the PIA and join in this journey of energy sustainability aimed at developing yhe nation’s oil and gas resources as cleanly as possible.
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