Nigeria plans to launch calls this year for new offshore oil blocks, marking the second auction in two years, the head of its oil regulator said Tuesday. This step is part of the strategy of the country, Africa’s leading oil producer, which is seeking to attract additional investment for deepwater projects.
Seeking investors for new offshore oil blocks
The auction process for offshore oil blocks is crucial for the expansion and diversification of the Nigerian oil industry, enabling the participation of investors and facilitating the sustainable development of deepwater projects. Opening up new opportunities in this sector is critical to counter onshore operational challenges and strengthen Nigeria’s position as a leader in oil production in Africa.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission(NUPRC), announced at an oil sector meeting that the upcoming auction will allow local and foreign companies to participate. During the closed session, bids will be opened, and the regulator aims to attract more bidders by significantly reducing the initial signing bonus.
Participation open to local and foreign companies
This measure seeks to encourage competition and diversification of participants in the auction, thus strengthening Nigeria’s oil industry. Komolafe stressed the importance of opening the door to local and foreign companies to boost the development and expansion of the sector, and believes that the modification of the initial signing bonus will be key to achieving this goal.
Komolafe announced that NUPRC completed last year’s tender, which offered seven offshore blocks in Lagos waters. This auction marked the country’s first foray into offshore bidding in 15 years.
“Ambitious plan” to strengthen the country’s position in the oil market
Although it did not disclose the names of the winning bidders, it highlights the strategic importance of offshore blocks in Nigeria, characterized by vast reserves and fewer challenges compared to onshore fields, such as sabotage and communal problems.
In a recent statement, NUPRC set an ambitious annual oil and condensate production target for 2026, aiming to reach 2.6 million barrels per day (bpd).
This ambitious increase from 2023 levels, which stand at around 1.6 million bpd, highlights the country’s determination to strengthen its presence and performance in the oil sector, accentuating its commitment to growth and efficiency in hydrocarbon production, with the new possibilities offered by offshore oil blocks.
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Source: www.oedigital.com
Photo: Piping Academy
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