FG offers 7 deepwater oil blocks in new bid round

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the commencement of the 2022 mini-bid round.

The landmark development is the first bidding round after the passage of the Petroleum Industry Act (PIA).

In a statement on Tuesday, Gbenga Komolafe, chief executive officer (CEO), NUPRC, said in this year’s mini-bid round, seven offshore blocks are put on offer.

He said the mini-bid round is an opportunity to spur new exploration and drilling activities in the prospective deep waters offshore Nigeria. 

“The mini-bid round is the first in a series of bid rounds, aimed at further development of this prospective petroleum basin will be held in accordance with the Petroleum Industry Act 2021 (PIA), with its enhanced legal and regulatory frameworks that seeks to encourage new investors and investments into the next phase of exploration in this region,” the statement reads. 

Komolafe said the mini-bid round will be managed by the NUPRC — in line with the provisions of the PIA — as the statutory body responsible for ensuring compliance with petroleum laws, regulations, and guidelines in the Nigerian upstream petroleum industry.

“The national data repository (NDR) of NUPRC and our multi-client partners are delighted and ready to support the mini-bid round underpinned by high-quality datasets,” he said.

“The blocks have extensive 2D and 3D seismic data coverage, including multi-beam and analog data.  Additionally, a remarkable quality, 3D MegaSurveyPlus reprocessed Pre-stack Time Migration (completed October, 2022), with angle stacks and gathers is also available to prospective bidders. Links to all data can be accessed via the dedicated NUPRC portal.

“The mini-bid round is a market-driven programme and will follow a transparent and competitive procurement process designed to attract competent third-party investors from across the world that have the capability and proficiency in operating in deep-water environment.” 

Komolafe added that exercise aims to build on the last mini-bid round held in April 2007 under the old regulatory regime and offered 45 blocks.

“Historically, this mini-bid round intends to build on the successes of the last bid round that held in April 2007 during which a total of 45 blocks, drawn from the inland basins of Anambra, Benue and Chad; the Niger Delta continental shelf; onshore Niger Delta and deep offshore were put on offer.  The 2007 bid round was held under a different regulatory regime (the Petroleum Act, 1969) and generated massive interest and participation with its attended revenue which made the exercise a success,” he said. 

“In this year’s mini-bid round, seven (7) offshore blocks covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m is put on offer. 

“The success of the mini-bid round will ensure all stakeholders gain value from the country’s resources, whilst paying close attention to reduction in carbon emissions, as well as overall environmental, social and governance (ESG) considerations.

“A dedicated programme portal (br.nuprc.gov.ng) for the mini-bid round has been published by NUPRC, which provides details of the bid round process, including the registration and prequalification requirements, and detailed guidelines for applicants. “

He added that a pre-conference is scheduled for January 16, 2023 to provide potential applicants with an opportunity to ask questions about the mini-bid round process and requirements. 

Interested companies will then be asked to submit prequalification applications by January 31, 2023, he said.