HOUSTON: Nigerian government says it will withdraw unutilised oil blocks as it opens the licensing rounds for 19 blocks in its oil-rich regions.
The Minister of State Petroleum (Oil), Heineken Lokpobiri issued the warning on Tuesday at the announcement of a new bidding round by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The NUPRC had listed 12 new blocks- PPL 300 (continental shelf), PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271 and seven old blocks.
The Commission’s Chief Executive, Gbenga Komolafe said the 12 acreages will be offered on closed bid based on a fair, transparent, and competitive bidding process in line with section 73 of the Petroleum Industry Act.
The petroleum minister who spoke on the criteria and relevance of the licensing round explained that the reason for lowering the signature bonus for new oil blocks is to allow investors to use the resources to fund their exploration.
Lokpobiri said, “Instead of asking you to pay a signature of $200m, we are reducing it to the nearest minimum. So we expect you to use your money to start exploration immediately.
“And if you breach any of the conditions, we will act. We want to give this thing (blocks) to the men with the big pockets that can provide the funding.
“As government, we are here to support the most strategic agency in the oil and gas industry. If the upstream doesn’t succeed, mid-stream and downstream will be a failure.”
According to the petroleum minister, the Bola Ahmed Tinubu-led government is willing to provide a safe environment for companies willing to invest in the country.
He said, “We are not playing politics. We are giving the blocks to people who have the wherewithal to undertake the project.
“This is my first bidding round as minister, and I hope there will be more bid rounds on those blocks that are lying fallow. We are doing whatever we can to work with stakeholders to see how those blocks you are not using. We want to find them out so that we can give it to more people.
“I have been mounting pressure on the system. For those blocks you are not using now, the law says that we can give it to people. Anybody whom we give marginal field, you must also sign that you will do it diligently. If you don’t do it diligently, automatically, it should expire.
“So, check your pockets before you even attempt. Despite the fact that entry barriers have been lowered, the whole new expectation is that the people who will benefit from this round should have money to be able to do exploration almost immediately.”
‘Check Your Pocket Before Bidding’- Petroleum Minister Reveals Plans To Revoke Unutilised Oil Blocks is first published on The Whistler Newspaper