Victor EzejaThe Nigeria Midstream and Downstream Petroleum Regulatory Commission (NUPRC), has reportedly removed five oil blocks from the 2024 licensing round due to legal disputes.
According to NUPRC, the affected oil blocks are PPL3008, PPL3009, PML51, PPL267, and PPL268.
Prime Business Africa recalls that the NUPRC Chief Executive, Gbenga Komolafe, had initially announced that 12 oil blocks (onshore) and two offshore were available for auction. He later announced that the Commission has added 17 deep offshore blocks to the 2024 Licensing Round, following further review and extended the deadline for registration by 10 days.
Join our WhatsApp Channel“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,” Komolafe said in a statement recently.
The registration/submission of pre-qualification documents which was initially scheduled to close on 25 June 2024, was extended to end on 5th July 2024, while bid preparation and submission which was initially scheduled to open on 4th July, will now start on 8th July and close on 29th November 2024.
READ ALSO: NUPRC Extends Deadline For Oil Block Licencing Round
However, in the latest statement, five blocks that were among the 12 onshore blocks initially announced are no longer available as a result various litigations on the assets.
The 12 blocks initially listed by the NUPRC Chief executive were PPL 300-CS; PPL 301 C-S; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267: PPL 268; PPL 269; PPL 270; and PPL 271.
“Due to newly acquired data from the Multiclients, the Assets on offer in the ongoing Licencing Round will be increased.
“However, PPL3008, PPL3009, PML51, PPL267, PPL268 have been removed from the Bid process due to ongoing litigation,” the NUPRC said in a statement.
Prime Business Africa reports that the the upstream regulator failed to disclose the litigants and the reasons for the litigation.
The Federal Government has been making efforts to increase oil and gas production in the country. In a bid to remove barriers to entry and encourage investors, the President Bola Tinubu reportedly reduced the signature bonus payable by successful bidders from around $200 million to $10 million.
On that note, investors going for deepwater oil blocks will now pay $10 million as a signature bonus while those going for shallow water and onshore will pay $7 million.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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