By Bassey Udo
To build on the successes recorded from the 2007 mini bid round, the Nigerian Upstream Regulatory Commission (NUPRC) on Wednesday announced the offer of seven offshore oil blocks for bids by prospective investors under the 2022 Mini Bid Round.
The Chief Executive Officer of the NUPRC, Gbenga Komolafe, who announced the opening of the exercise in Abuja said the seven offshore oil blocks on offer cover an area of approximately 6,700 kilometers square in water depths of between 1,150 metres and 3,100metres.
The CCE said the Mini Bid Round would provide an opportunity for local and multinational investors with the technical and financial services to capacity and capability to develop the oil blocks to help realise the aspirations and objectives of the Federal Government in the upstream petroleum industry.
Specifically, the NUPRC boss said the bid exercise was expected to spur new exploration and drilling activities in the country’s prospective deep offshore waters. The Mini Bid Round, which is the first in a series of bid rounds to be held in accordance with the Petroleum Industry Act 2021 (PIA).
Under the PIA, there are enhanced legal and regulatory frameworks that seek to encourage new investors and investments into the next phase of exploration in the country’s deep offshore waters region.
“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.
“The blocks have extensive 2D and 3D seismic data coverage, including multi-beam and analog data,” he said.
In addition, the CCE said remarkable quality, 3D MegaSurveyPlus reprocessed Pre-stack Time Migration (completed in October 2022), with angle stacks and gathers would also be available to prospective bidders.
The upstream petroleum industry regulator explained that the bid exercise aimed at the further development of the prospective petroleum basin, would be a market-driven exercise designed to follow a transparent and competitive procurement process aimed at attracting only competent third-party investors from across the world with the capability and proficiency to operate in deep-water environment.
He said the latest Mini Bid Round intends to build on the successes of the last bid round that held in April 2007 during which 45 oil blocks were on offer, 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 CCE described the 2007 bid round exercise a success, with massive interest and participation which resulted in huge revenue earnings by the Federal Government despite being held under the provisions of the defunct Petroleum Act, 1969.
With the 2022 exercise to be held under the new terms in the PIA, the CCE said its success would ensure all stakeholders gained 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.
To access the details for the oil blocks on offer and the bid process, the CCE said a dedicated programme portal (br.nuprc.gov.ng) has been published by NUPRC, including the registration and prequalification requirements, and detailed guidelines for applicants.
“A pre-bid conference is scheduled for 16th Jan 2023, to provide potential applicants with an opportunity to ask questions they may have concerning the Mini Bid Round process and requirements, after which interested companies will be invited to submit their pre-qualification applications by 31st Jan 2023. NUPRC will continue to provide further details and roadmap for this international competitive Mini Bid Round in due course,” he said.
