…As FG woos investors at OTC 2024
By Udeme Akpan, Energy Editor, in Houston, Texas
Many indigenous companies and International Oil Companies, IOCs, have indicated interest in bidding for the 12 onshore and seven deep offshore blocks put forward for sale by the Federal Government.
Hotnewsnaija.com.ng gathered yesterday that the companies have been reviewing the requirements, including technical competence and financial capacity, required by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, to qualify for the bid.
NUPRC regulates activities in the oil and gas sector in Nigeria
Members of the Petroleum Technology Association of Nigeria, PETAN, an association of Nigerian Indigenous Technical Oilfield Service Companies in the upstream and downstream sectors have put forward their interest, according to the chairman of the group, Engr. Wole Ogunsanya.
“We are trying to study the available fields to determine if they are viable in scale for our members,” Ogunsanya said yesterday.
The 12 Petroleum Prospecting Leases, PPLs include 300, 301, 3008, 3009, 2000, 2001, 267, 268, 269, 270, 271 and Petroleum Mining Lease, PML 51, while the Deep Offshore Blocks, PPLs are 300, 301, 302, 303, 304, 305 and 306.
Top company officials, who pleaded anonymity because they were not granted permission to speak, said in different conversations with Vanguard that they have started working with their local and international consultants toward bidding for the oil blocks.
They pleaded that their company’s names should not be made public to avoid jeopardising their chances in the bid.
The CEO of Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, who confirmed the interest of potential bidders to Vanguard yesterday, said the ongoing Offshore Technology Conference, OTC 2024 has presented a great opportunity to also woo investors for the oil blocks.
‘NUPRC’s mission at OTC 2024’
He said: “Our mission at the OTC is to leverage one of the largest oil and gas events globally to showcase the huge hydrocarbon potentials and investment opportunities in Nigeria and in a similar manner, canvass the participation of financially and technically capable players in the deep offshore to participate at the Nigerian 2024 licensing round for overwhelming success of the important exercise.
“This is in furtherance of our dear President Bola Ahmed Tinubu’s declaration that Nigeria is ready for business with a practical demonstration of that through the recent executive orders on various fiscal and policy incentives to enhance business in the oil and gas sector.
“NUPRC, as the implementing arm of government and the executive is committed to the implementation of the goals and focus of Mr. President in the sector as demonstrated and in line with the intent of the PIA. We have announced locally, now that we are going offshore to launch the bid in the roadshow.
“However, feedback has been positive on potential investors’ enthusiasm. Don’t forget that for the first time in history, President Tinubu, as a petroleum minister, has vacated front entry barriers to investment in oil blocks awards in all terrains.
“The focus of the bid will be on technical and financial capacity to proceed to the field on work programmes after awards, while hitherto signature bonus has been dropped to a token and replaced with Production Bonus.
“The reform in the licensing rounds process is to refocus the energy of investors on hydrocarbon carbon resources development and optimization.
“The hitherto huge amounts tied down as front entry Signature Bonus constituting barrier is now drastically minimized and expected to be channelled by awardees as part of capital expenditures, CapEx, for field development.”
Similarly, the Chairman, Petroleum Technology Association of Nigeria, PETAN, an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream sectors of the oil industry, Mr. Wole Ogunsanya, said: “We are trying to study the available fields to determine if viable in scale for our members.”
Already, in its report obtained by Vanguard, NUPRC, stated: “To date, the assets have achieved a cumulative production of 5.35 billion barrels of crude oil, 165. 57 million barrels of condensate, 9.51 trillion cubic feet of associated gas and 3.75 trillion cubic feet of non-associated gas, contributing immensely to the achievement of Nigeria’s crude and condensate output.
“The assets being considered have an estimated total reserves of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of non-associated gas.
“This makes a significant contribution to the nation’s hydrocarbon resources. Additionally, these assets hold P3 reserves estimated at 2.85 billion barrels of oil, 850.85 million barrels of condensate, 11.3 trillion cubic feet of associated gas and 12.26 trillion cubic feet of non-associated gas.”
According to the programme, the official opening of the Nigerian pavilion, dedicated to the marketing of Nigeria’s potential to foreign investors today will be attended by the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri; Minister of State for Petroleum Resources (Gas), Hon. Ekerikpe Ekpo; Chief Executive, NUPRC, Engr. Gbenga Komolafe; Group Chief Executive Officer, NNPC Ltd, Mele Kyari; Chairman of PETAN, Engr. Wole Ogunsanya, and Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Felix Ogbe.
The OTC 2024 has 31,000 energy professionals attending, 45 technical sessions, 450 presentations and 1,300 exhibitors drawn from different countries, including Nigeria.
