Legal Disputes Remove Five Oil Blocks from Nigerian Licensing Round
The NUPRC has confirmed that oil blocks PPL3008, PPL3009, PML51, PPL267, and PPL268 have been withdrawn from the current licensing round due to litigation issues.
This development comes after the commission initially listed these blocks among 12 others at the Miami International Roadshow for the 2024 licensing round, organised in collaboration with the Petroleum Technology Association of Nigeria and Zetse Advisory & Consulting.
Despite the removal of these blocks, the NUPRC plans to increase the number of assets on offer due to newly acquired data. “Due to newly acquired data from the Multiclients, the assets on offer in the ongoing licensing round will be increased,” stated the commission. However, the reasons behind the legal disputes and the identities of the litigants remain undisclosed.
The commission’s chief, Gbenga Komolafe, has also announced the addition of 17 deep offshore blocks to the 2024 licensing round. This move is part of the NUPRC’s strategy to leverage Nigeria’s vast oil and gas reserves and boost production by encouraging further investment in the upstream sector.
In light of these changes, the schedule for the 2024 Licensing Round has been amended. The deadline for registration and submission of pre-qualification documents has been extended to July 5, 2024. Additionally, the data access and bid submission period will now open on July 8, 2024, while the closing date remains November 29, 2024.
In a recent pre-bid conference in Lagos, it was announced that President Bola Tinubu had reduced the signature bonus for successful bidders from approximately $200 million to $10 million. This decision was influenced by a comparative analysis with other countries, such as Brazil, which highlighted the need to make Nigeria’s licensing terms more competitive.
The NUPRC continues to refine its approach to attract investment and ensure a transparent and efficient licensing process, despite the legal challenges affecting some of the blocks initially on offer.
