Bid for17 oil blocs not for politicians but investors— Minister
The 17 oil blocs put forward for sale under the 2024 licensing bid round by the Federal Government are not for politicians, but investors with financial capacity and technical competence.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the revelation during a conference organised by the Petroleum Technology Association of Nigeria (PETAN), at the ongoing 2024 Offshore Technology Conference (OTC), in Houston, Texas U.S.
According to him, the move forms part of the effort to drive investment and boost the nation’s economic fortunes.
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With the theme “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective), the Minister explained that in the past, the award of oil blocs culminated in the non-development of over 90 per cent of marginal fields.
This, he said, denied the government of reaping the intended benefits because such awards were not based on technical and financial considerations.
“We have noticed a lot of idle blocs and little or no investment done on them in the last three years of acquiring them.
“I can tell you for a fact that over 90 per cent of owners of these oil blocs are seeking renewal without commencing or investing in them.
“In this regard, we are saying no more to that, and hence, those seeking blocs must be financially and technically capable of turning it around and not mere portfolio investors.
“These set of investors are those we consider as men and not boys in the industry.
“The blocs are not for politicians. So, we are downplaying that kind of investor in this new bid round.
“However, we have taken away the 200 million signature bonus tied to blocs ownership.
“What we have tried to achieve is to tie such to operations and investment which will encourage investors and drive investment speedily on a field.
“I have worked closely with the NUPRC to ensure that we achieve a seamless transition and bid round sales this year,” Lokpobiri said.
Similarly, the Commission Chief Executive, of the Nigerian Upstream Petroleum Regulatory Commission, (NUPRC), Mr Gbenga Komolafe, said the recent Presidential Executive Orders issued in March were aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector.
Komolafe said that it would culminate in further increasing the nation’s oil and gas reserves, currently standing at 37.5 billion barrels of crude oil and condensate reserves and 209.26 trillion cubic feet of natural gas reserves.
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