By Akinsuroju Olubunmi
Investment focus: Nigeria’s oil blocks open for competent investors
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, emphasized that the 19 oil blocks slated for sale in the 2024 bidding round are earmarked for investors with both financial capability and technical expertise, rather than for politicians seeking mere portfolio investments.
Lokpobiri highlighted the past misallocation of oil blocks, which resulted in the underdevelopment of over 90% of marginal fields. This trend, he noted, deprived the federal government of intended benefits due to a lack of technical and financial considerations in the award process.
Addressing attendees at the 2024 Offshore Technology Conference in Houston, Texas, the Minister underscored the need for capable investors who can revitalize dormant oil blocks, emphasizing a shift away from speculative portfolio investments.
He also announced the removal of the 200 million signature bonus tied to block ownership, redirecting focus towards operational and investment commitments to encourage swift development.
In alignment with the Petroleum Industry Act 2021, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, outlined the strategic approach to the bidding round. Twelve carefully selected blocks spanning diverse geological formations have been identified, along with the inclusion of seven deep offshore blocks from the 2022 Mini-Bid Round Exercise.
Komolafe emphasized the availability of comprehensive geological data to inform decision-making and facilitate strategic investments, demonstrating Nigeria’s commitment to openness and transparency in the oil and gas sector.
Elohor Aboni, Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), reiterated Shell’s commitment to Nigeria, highlighting a global shift towards gas development while maintaining focus on deep offshore oil and gas assets.
As Nigeria seeks to attract competent investors and enhance its oil and gas sector, the 2024 bidding round represents a significant opportunity for strategic partnerships and sustainable growth.
Investment focus: Nigeria’s oil , Competent Investors