Members of the Petroleum Technology Association of Nigeria, PETAN - an association of Nigerian Indigenous Technical Oilfield Service Companies in the upstream and downstream sectors - have indicated interest in bidding for 12 onshore and seven deep offshore blocks, currently put forward for sale.
Chairman of the association, Engr. Wole Ogunsanya, who confirmed the development in a telephone interview with Vanguard, said: "We are trying to study the available fields to determine if viable in scale for our members."
The 12 Petroleum Prospecting Leases, PPLs are 300, 301, 3008, 3009, 2000, 2001, 267, 268, 269, 270, 271 and Petroleum Mining Lease, PML 51 while the Deep Offshore Blocks, PPLs are 300, 301, 302, 303, 304, 305 and 306.
Checks by Vanguard indicated that many indigenous and International Oil Companies, IoCs, are also considering the possibility of buying the oil assets.
Commenting on the development, the Commission Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, confirmed the interest of potential bidders, adding that the ongoing Offshore Technology Conference, OTC 2024 presents a great opportunity for wooing investors.
He said: "Our mission at the OTC is to leverage one of the largest oil and gas events globally to showcase the huge hydrocarbon potentials and investment opportunities in Nigeria and in a likewise manner canvass for the participation of financially and technically capable players in the deep offshore to participate at the Nigerian 2024 licensing round for overwhelming success of the important exercise.
"This is in furtherance of the declaration of our dear president Bola Ahmed Tinubu, that Nigeria is ready for business with practical demonstration of that through the recent Executive orders on various fiscal and policy incentives to enhance business in the oil and gas sector.
"The NUPRC as the implementing arm of government and the Executive is committed to the implementation of the goals and focus of Mr. President in the sector as demonstrated and in line with the intent of the PIA.
"We have announced locally, now that we are going offshore to launch the bid in the roadshow."
He also said: "However, feedback has been positive on potential investors' enthusiasm. Don't forget that for the first time in history, President Tinubu, as a petroleum minister, has vacated front entry barriers to investment in oil blocks awards in all terrains.
"The focus of the bid will be on technical and final capacity to proceed to the field on work programs, after awards while hitherto signature Bonus has been dropped to a token and replaced with Production Bonus.
"The reform in the licensing rounds process is to refocus the energy of investors on hydrocarbon carbon resources development and optimization.
"The hitherto huge amounts tied down as front entry Signature Bonus constituting barrier is now drastically minimized and expected to be channeled by awardees as part of Capital expenditures, CapEx for field development."
In his report obtained by Vanguard, NUPRC stated: "To date, the assets have achieved a cumulative production of 5.35 billion barrels of crude oil, 165. 57 million barrels of condensate, 9.51 trillion cubic feet of Associated Gas and 3.75 trillion cubic feet of Non-Associated Gas, contributing immensely to the achievement of Nigeria's crude and condensate output.
"The assets being considered have an estimated total reserve of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of nonassociated gas. This makes a significant contribution to the nation's hydrocarbon resources. Additionally, these assets hold P3 reserves estimated at 2.85 billion barrels of oil, 850.85 million barrels of condensate, 11.3 trillion cubic feet of associated gas and 12.26 trillion cubic feet of Non-Associated Gas".
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According to the programme, the official opening of the Nigerian Pavilion, dedicated to the marketing of Nigeria's potential to foreign investors on Monday, will be attended by the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri; Minister of State for Petroleum Resources (Gas), Hon. Ekerikpe Ekpo; Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe; Group Chief Executive Officer, NNPC Ltd, Mele Kyari; Chairman of PETAN, Engr. Wole Ogunsanya and Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Felix Ogbe.
