Min Oil Bid Round To Increase Energy Security - FG

The Federal Government has promised that the mini-bid round for Nigeria will ultimately increase global energy sufficiency.

This was said on Monday at a pre-bid conference in Lagos by Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

He stated that seven Deep Offshore blocks were anticipated to be auctioned during this year's mini bid rounds, the first in the previous 15 years.

Komolafe said that the mini bid round also included a roughly 6,700 km2 area with ocean depths ranging from 1,150 m to 3,100 m.

He said that by aggressively pursuing exploration and development, the exercise was anticipated to be a tremendous success for Nigeria and a significant step toward increasing the country's oil and gas reserves.

According to him, the exercise would also increase production and open up new opportunities for the use and development of gas.

He stated that the bid round will improve the economy and energy security by giving the chance to profitably work with the pool of qualified oil and gas businesses.

He said the above would would create job opportunities, facilitate the transfer of technology, value the petroleum assets on Nigerian territory, and draw in investments.

“In addition, the Mini Bid Round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).”

He gave his word that the procedure would follow best practises and be impartial, open, and competitive.

He continued by saying that it would draw knowledgeable investors from all over the world, both domestically and outside, who were capable of functioning in a deep water environment.

Komolafe emphasised that all candidates might participate either as an individual company or as a consortium and that all grantees must be properly registered in Nigeria under the Companies and Allied Matters Act (CAMA).

“The process will pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall Environmental, Social and Governance (ESG) considerations. 

“The oil and gas industry in Nigeria has embraced the reality of energy transition and is taking strategic position to leverage on the opportunities presented by the unfolding era. 

“We have taken deliberate steps in this regard including the recent issuance of guidelines for management of fugitive methane and greenhouse gas emissions in the upstream oil and gas operations in Nigeria. 

“However, it is worthy to recognise that recent events around the globe indicate that fossil fuels will continue to be a core part of the global energy mix well into the future.”