Nigeria Opens 220 Acreages for Oil Exploration in Major Investment Push
The Nigerian Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced the availability of 220 open acreages, signalling a significant opportunity for exploration and investment in the country’s oil and gas sector. These acreages, which refer to specific tracts of land designated for exploration and drilling, are now open for leasing or sale, offering companies a chance to extract valuable natural resources.
In addition to these open acreages, the government is inviting investors to explore 31 available oil blocks. This marks a concerted effort to attract both domestic and international players to contribute to the growth of Nigeria’s upstream oil sector.
Gbenga Komolafe, Chief Executive of the NUPRC, revealed these opportunities during his presentation at the Africa Oil Week in Cape Town, South Africa. Komolafe’s presentation, titled ‘Unpacking the 2024 Nigerian Licensing Round,’ detailed the government’s strategic push for investment. He explained that the 31 blocks include seven deep offshore assets and 24 acreages available for bids in the upcoming 2024 Licensing Round.
“The Nigerian government is offering 31 blocks for investment, which will be allocated through a fair, transparent, and competitive bidding process in line with Section 73(1) of the Petroleum Industry Bill,” Komolafe stated.
He highlighted Nigeria’s vast natural resources, noting that the country holds more than 30 per cent of Africa’s crude oil and condensate reserves, as well as over 33 per cent of the continent’s natural gas reserves. This wealth of energy resources, combined with ongoing reforms, presents a significant opportunity for investors.
In a move aimed at boosting competitiveness, the NUPRC chief noted that Nigeria has removed the once-hefty signature bonuses that previously hampered investment in licence bidding rounds. “We have become far more pragmatic and strategic in offering incentives, including the removal of large front-loaded signature bonuses,” Komolafe explained. “This, along with the introduction of attractive acreage sizing, is designed to enhance global competitiveness in our bid rounds.”
Komolafe further outlined some of the blocks available for bidding, including PPL 300, 301, 303, and 3,016, among others, emphasising the government’s ambition to streamline the investment process and attract significant foreign capital.
Meanwhile, Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), revealed on Tuesday that the government expects $50 billion in investments in the oil sector by the end of the year. He attributed this anticipated inflow to the ambitious fiscal reforms spearheaded by the Federal Government, which are already attracting companies back to Nigeria after years of an adverse operating environment.
With these extensive reforms and opportunities, the Nigerian oil and gas sector is poised to become an even more attractive destination for global investors looking to tap into Africa’s vast energy resources.
