See how to apply to become owner of one of 17 new oil blocks

• The NUPRC has announced plans to hand over 12 new oil blocks to interested persons with the capacity
• The bidding is expected to be transparent and competitive, and qualified companies can begin exploration
• The federal government is determined to increase Nigeria's oil production, which continues to fall short of the OPEC quota

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the addition of 17 deep offshore blocks to the 2024 Licensing Round.

This move is part of the commission's efforts to enhance exploration activities and increase production in the Nigerian upstream sector.

Nigeria oil well up for grabs Photo credit: STR / Contributor
Source: Getty Images

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Legit.ng had previously reported that NUPRC invited investors to bid for 12 oil blocks and seven deep offshore assets in the 2024 marginal fields bid round.

Also, on June 12, 2024, Punch reported that the Federal government increased the number of oil blocks on offer in the 2024 marginal bid round.

New oil blocks up for grabs

The additional oil blocks bidding round for 2024 was announced by Gbenga Komolafe, the NUPRC chief executive, in a statement issued in Abuja on Tuesday, June 19.

Komolafe noted that the commission is committed tomaximisingg the country's abundant oil and gas resource

He said:

"In line with our commitment to maximising the value of Nigeria's vast oil and gas reserves and boosting production, the commission has been diligently collaborating with multi-client companies to conduct extensive exploratory activities. "This effort aims to gather more data and stimulate further investment in the Nigerian upstream sector."

Komolafe explained that the decision to add these blocks was based on the acquisition of additional data related to deep offshore exploration.

He further noted that some assets, including PPL 300-CS & PPL 301-CS, PPL 2000, and PPL 2001, could be bid for as clusters or single units, providing flexibility to interested bidders.

NUPRC boss added:

“By 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.”

How to bid for the oil blocks

Komolafe advised bidders to refer to the Frequently Asked Questions Sections of the 2022/23 and 2024 Licensing Round portals, or contact the upstream regulatory agency.

He encouraged the public to take advantage of the expanded opportunities and attractive entry terms.

He also said that not only the increase of number of oil blocks the deadline to submit application has been amended.

He said:

“Registration/submission of pre-qualification documents which was initially scheduled to close on June 25, 2024, has been extended by 10 days and will now close on July 5, 2024.“Data access/data purchase/evaluation/bid preparation and submission which was initially scheduled to open on July 4, 2024, and close on 29/11/24 will now start on July 8, 2024, and close on 29/11/24 as previously scheduled.“All other dates in the published 2024 licencing round schedule remain the same unless otherwise communicated.”

Oil blocks fee reduced

He stressed that President Bola Tinubu, in his capacity as petroleum minister, has approved attractive fiscal regimes andminimisedd entry fees for both licencing rounds, Punch reports.

This decision aims to promote transparency and provide a level playing field for all bidders.

He added:

"As a result, all blocks in the 2022/23 and 2024 Licencing Rounds are now available to interested investors. "

Nigeria discovers new oil well

In a related development, Legit.ng reported that the Nigerian National Petroleum Company (NNPC) and Natural Limited Oilfield Services have begun oil production in a new well.

The NNPC stated that the new oil well, OML 13 in Akwa Ibom State, is expected to produce 40,000 barrels daily.

The company said the NNPC and its partners have already commenced the production of 6,000 barrels at the OML.

Source: Legit.ng