• Sahara, Sifax, Panout trounce NNPC to sweep blocks

Sopuruchi Onwuka

All the international oil companies (IOCs) operating in the country, except TotalEnergies, were unable to win any of the 25 oil blocks at the 2024 bid round organized by the Nigerian government, paving the way for a new set of relatively new exploration and production companies to clinch entry assets.

Federal government on Wednesday auctioned some 25 oil blocks to local and international oil companies as it concludes the 2022/2023 mini-bid round and the 2024 commercial licensing round in a locks combined commercial bid conference hosted in Lagos.

Government’s acreage lease administrator, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) which conducted the commercial bid conference, declared that the exercise was aimed at unlocking Nigeria’s energy potential, adding that the licensing round was for the future.

The auctioned 25 oil blocks located in deepwater and conventional terrains were part of the total of 31 blocks originally put on offer by the NUPRC, but six of the blocks did not receive any bids.

The CCE, NUPRC, Engr Gbenga Komolafe

TotalEnergies Exploration and Production Nigeria (TEPN) Limited stands out as the only IOC that walked away with oil block from the bid conference with Petroleum Prospecting Lease (PPL) 200/2001; while Chevron’s local deepwater affiliate, Star Deepwater Petroleum Limited, left without any block after multiple attempts.

Surprisingly, relatively unknown local and foreign independent companies shook the table by carting away many oil blocks, with some of them jumping home with double oil blocks each.

Sifax & RoyalGate Consortium went home with blocks 300 and 304 in the deepwater; Sahara Deepwater Resources Limited also went home with blocks 270 and 271; and Panout Oil and Gas Limited carted home blocks 3015 and 300/301.

Halikat Oil and Gas Consortium Limited won lease for deepwater block 305 and block 3016; Biswal Oil & Gas Limited also grabbed deepwater Block 306 and also Block 2002; while R28 Holdings Limited scored a double with Blocks 2007 3011.

Other lucky bidders that raised their brands at the event with double blocks include Tulcan Energy Oil & Gas Limited which clinched Blocks 3012 and 2008; and OceanGate Engineering Oil & Gas Limited which won Blocks 3007.

Applefield Oil & Gas Limited scored wins for Blocks 2005 and 301; and First E&P Development Company Limited maintained grip on Blocks 2003 and 2006.

Other independents that won oil blocks include The Wills International Limited which won Block 2004; Broron Energy Limited with Block 2009; MRS Oil and Gas Company Limited with deepwater Block 303; and Petroli Energy Marketing and Supply Limited with Block 269.

Expectations that the Nigerian Exploration and Production Limited (NEPL) would leverage the bid conference for inorganic asset growth failed as the company was beaten by all its competitors in the contest for deepwater PPLs 303, 305 and 306.

NEPL is the upstream operating subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

In his remarks at the event, the Commission Chief Executive (CCE) of the NUPRC, Engr Gbenga Komolafe, reminded the participants that the bid round would be the first to be conducted in the spirit of the Petroleum Industry Act (PIA) and all its provisions.

He stated that the Nigerian bid round for oil block would henceforth be an annual event, stressing that the commission would now regularly harvest dormant oilfields from existing licensees for reallocation through licensing rounds. He pointed out that the measure is part of the drill-or-drop provisions of the PIA.

Other provisions of the PIA that would guide annual bid rounds, according to him, include the guarantee of industry and global best practices, transparency and fair competition.

According to him, government is unlocking Nigeria’s energy potentials through licensing rounds in response to multiple market signals of rising petroleum demand outlook, the loom of energy transition, the need for enhanced foreign direct investment in achieving prime national objectives of building petroleum reserves and growing production.

He stated that enhanced industry activity would assist Nigeria’s quest for energy security, technological transfer and resource optimization through aggressive exploration and accelerated production.

To ensure realization of the objectives, he pointed out, government has lowered entry barriers to accommodate new investors. The measure, he noted, would enhance utilization of local content by the industry, shorten contracting cycle, and increase environmental responsibility in the upstream petroleum industry.

The Oracle Today reports that the current administration of the federal government has in the face of the prevailing foreign exchange squeeze in the economy and the associated inflationary jumps ordered all agencies of the petroleum ministry to quickly revamp the industry for production boost and improved foreign exchange revenue.