2024 Oil Bid : NUPRC Unveils 17 New Oil Blocks

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expanded the list of available deep offshore oil blocks for the 2024 oil bidding process by adding 17 new blocks, increasing the total number of blocks available to 36.

These blocks, spread across the Niger Delta onshore, the Continental shelf, and deep offshore areas, are anticipated to enhance the nation’s oil reserves and elevate its oil output.

Naija News reports that in April, the NUPRC announced 12 additional blocks for the 2024 bidding process, along with seven deep offshore blocks from the previous year’s bidding.

The Commission, in a statement signed by its Chief Executive, Engr. Gbenga Komolafe, titled: Nigeria oil block licensing round- Updates on 2022/2023 and 2024 licencing rounds, also reopened the commercial bidding for the 2022/2023 licensing round.

Komolafe stated that the decision to reopen the bidding was to provide investors with the opportunity to benefit from the fiscal incentives that President Bola Ahmed Tinubu, who also serves as the Minister of Petroleum Resources, has approved.

He further explained that the Commission’s goal is to leverage the country’s rich oil and gas reserves and increase production.

To achieve this, the Commission, he noted, has been collaborating with multiple companies to conduct more exploratory activities, aiming to gather more data to attract further investment in the Nigerian upstream sector.

The statement noted that “As a result of additional data acquired in respect of deep offshore blocks, the Commission has added seventeen deep offshore blocks to the 2024 Licensing Round. Further details on the blocks can be found on the bid portal.

“Lastly, in accordance with the published guidelines, we had earlier indicated that some of the assets on offer should be applied for as clusters, namely: PPL 300-CS & PPL 301-CS, PPL 2000 and PPL 2001. Bidders are hereby advised that they may, at their option, bid for those blocks as clusters or as single units.

“It may be recalled that some deep offshore blocks were put on offer for the 2022/23 Mini Bid Round, and other blocks which cut across onshore, continental shelf and deep offshore terrains were also put on offer for the Nigeria 2024 Licencing Round.

“In order to vacate entry barriers, the Commission had sought and obtained the approval of His Excellency, President, Bola Ahmed Tinubu, GCFR, who, as Petroleum Minister, in line with his avowed determination to create enabling and attractive investment regimes in the upstream oil and gas sector, approved attractive fiscal regimes and also minimised entry fees for both licencing rounds by putting a cap on the signature bonus payable for award of the acreages.

“Consequently, it is necessary to ensure that the same bid criteria (in addition to the uniform signature bonus criteria) are applicable for both licencing rounds, to promote transparency and provide a level playing ground for all bidders.

“Since the criteria for the award of the oil blocks are now much more attractive than they initially were during the 2022/23 Mini Bid Round, it is in the interest of equity and fair play to give all investors the same opportunity to bid for the assets”.