The 2024 Nigerian Oil Fields Licencing Round will now include 17 deep offshore oil blocks, according to a Federal Government announcement on Tuesday.
Remember that several deep offshore blocks were recently offered for the 2022–2023 mini-bid round, and that the Nigeria 2024 Licencing Round also included offers for other blocks that cut between onshore, continental shelf, and deep offshore terrains.
In the 2024 marginal fields bid round, the government specifically requested investors to submit bids for 12 oil blocks and seven deep offshore assets on May 8.
It was also announced on June 12, 2024, that the Federal government has raised the quantity of oil blocks up for grabs in the 2024 marginal bid round.
This was revealed at the pre-bid conference for the 2024 licencing round in Lagos by Gbenga Komolafe, the chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission.
In a statement he signed and released in Abuja on Tuesday, Komolafe provided updates on the 2022/2023 and 2024 licencing rounds, stating that 17 deep offshore blocks had been added to the 2024 Licencing Round.
He said, “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.
“As a result of additional data acquired in respect of deep offshore blocks, the commission has added 17 deep offshore blocks to the 2024 Licensing Round. Further details on the blocks can be found on the bid portal.”
Komolafe further stated that “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.”
He advised bidders seeking clarity to consult the upstream regulatory agency or the Frequently Asked Questions Sections of the 2022/23 and 2024 Licencing Round portals.
The head of NUPRC added that the schedule for the 2024 Licencing Round has been adjusted to enable interested investors to take advantage of the increased chances.
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.”
He said that in order to remove obstacles to entry, the commission had asked and received permission from President Bola Tinubu, who as the minister of petroleum approved enticing fiscal regimes and reduced entry fees for both licencing rounds by capping the signature bonus that would be awarded for the 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,” Komolafe stated.
On the basis of this, he announced that all blocks in the 2022–2023 and 2024 Licencing Rounds were now accessible to all interested investors on the websites created by the NUPRC for the exercise. He also mentioned that new applicants may now register for the 2022–2023 Mini Bid Round.
“The public is therefore invited to take advantage of this development and attractive entry terms and conditions and participate in the exercise.
“However, all the pre-qualified applicants published on the 2022/23 Mini Bid Round portal will not be required to go through a new pre-qualification process, as their technical submissions remain valid and eligible even for the 2024 Licencing Round.
“They may, however, wish to re-submit new commercial bids to take advantage of the more attractive criteria applicable to both licencing rounds and revise their bid bonds to adapt to the new bid criteria. They are also free to bid for blocks on offer in the 2024 Licencing Round,” Komolafe stated.
