Nigeria Announces A ‘Mini Bid Round’ For Seven Offshore Oil Blocks

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that it is offering seven deep offshore oil blocks to investors to boost oil production and generate revenue for the Nigerian government.

The NUPRC described the offering as a "mini-bid round 2022" and the offer is open to both foreign and local bidders.

Gbenga Komolafe, Chief Executive of the commission, announced the commencement of the oil block bid round process in Abuja.

"In this year's mini-bid round, seven Offshore blocks covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m is put on offer," said Komolafe, as per The Guardian.

He further added that it was an opportunity to propel new exploration and drilling activities in the prospective deep waters offshore Nigeria, something that is desperately needed as the country is currently struggling to meet its 1.8 million barrels per day oil production quota set by OPEC.

Komolafe noted that the process for conducting market-driven activities would be carried out under the Petroleum Industry Act 2021.

"The procurement process for this project will be transparent and competitive, designed to attract capable third-party investors from all over the world who can operate in deep-water environments," said Komolafe.

He explained that the mini-bid round will follow a transparent and competitive procurement process designed to attract competent third-party investors from across the world that has the capability and proficiency in operating in deep-water environments.

"The blocks have extensive 2D and 3D seismic data coverage, including multi-beam and analog data. Additionally, a remarkable quality, 3D MegaSurveyPlus reprocessed Pre-stack Time Migration (completed October 2022), with angle stacks and gathers is also available to prospective bidders. Links to all data can be accessed via the dedicated NUPRC portal," he added.

The pre-bid conference for the mini-bid round process is scheduled for Jan. 16, 2023, during which potential applicants will be able to ask questions and receive clarification about the process and requirements. After the conference, interested companies will have until Jan. 31, 2023 to submit their pre-qualification applications, Premium Times Reported.

According to Komolafe, the mini-bid round held in April 2007 was successful in drawing interest and generating revenue from the 45 blocks that were put on offer from the inland Basins of Anambra, Benue, and Chad; the Niger Delta Continental Shelf; Onshore Niger Delta and Deep Offshore. However, the 2007 bid round was conducted under a different regulatory regime (the Petroleum Act, 1969).