FG reveals how foreign investors can tap into Nigeria's oil wells

• The Nigerian Upstream and Petroleum Regulatory Commission (NUPRC) has asked foreign investors to invest
• NUPRC's chief executive, Gbenga Komolafe, disclosed this during the Africa Oil Week Conference in Cape Town, South Africa. 
• He said vital natural resources, a competitive regulatory framework, and strategic incentives have created a favourable environment for investors

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has asked foreign investors to take advantage of the opportunity of the ongoing licensing round in Nigeria to benefit from and contribute to Nigeria’s fast-growing oil and gas industry.

NUPRC's chief executive, Gbenga Komolafe, disclosed this during the Africa Oil Week Conference in Cape Town, South Africa. 

President BolaTinubu's government invites bidders for oil blocks Credit: State House
Source: Getty Images

Nigeria offers 31 oil blocks

He revealed that the licensing round features over 31 oil blocks, supported by a robust regulatory framework under the Petroleum Industry Act (PIA).

Komolafe said vital natural resources, a competitive regulatory framework, and strategic incentives had created a favourable environment for investors wishing to participate in Nigeria’s oil and gas sector.

He assured investors of a new dispensation of certainty in Nigeria’s oil and gas industry, stressing that the country remains committed to ensuring transparency, social inclusion, and sustainable development.

The NUPRC boss said the 2024 licensing round offers investors a significant opportunity to contribute to and benefit from Nigeria's long-term energy growth.

According to Komolafe, Nigeria boasts vast potential, including 209.26 trillion cubic feet of natural gas reserves, 37.5 billion barrels of crude oil reserves, and an oil production capacity of 2.4 million daily.

He further stated that in line with the PIA provisions, the commission introduced comprehensive guidelines to moderate the licensing process, boost stakeholder engagement, and ensure environmental sustainability.

FG begins pre-qualification bid round

The aim is to attract local and international investments to drive growth and innovation.

The New Telegraph reports that a statement by the NUPRC head of public affairs and corporate communications, Olaide Shonola, quoted Komolafe as saying that to facilitate a smooth licensing process, the commission has provided a clear roadmap for investors, including a pre-qualification process where companies have to show technical, financial and other capabilities.

He said it was important to note that the qualification and submission of pre-qualification documents have been concluded, a pre-qualification document has been concluded, a pre-qualification pre-bid conference has been held, and an evaluation of submission and notification of the pre-qualification has also been carried out.

Dangote gears up for crude oil production

Legit.ng earlier reported that the Dangote Group is preparing to begin production at its two oil fields in Nigeria by the fourth quarter of 2024, following several months of disruptions in crude supply.

According to S&P Global Commodity Insights, the company plans to launch production at its upstream projects in Oil Mining Leases 71 and 72 in the Niger Delta, initially producing around 20,000 barrels per day.

This output is expected to increase further in the first quarter of 2025.

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Source: Legit.ng