Friday, March 31, 2023
Home EXPLORATIONS Nigeria to auction seven oil blocks offshore Lagos November

Nigeria to auction seven oil blocks offshore Lagos November

Nigeria government has concluded plans to offer for sales seven fresh deep offshore oil block licences  in November, 2022.

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Chief Executive, Gbenga Komolafe, the oil blocks available are at depths of between about 1,200 meters (3,936 feet) and 3,100 metres offshore Lagos.

This last time the federal government issued dozens of such permits was between 1993 and 2007, and it was meant to open up the ocean floor to oil and gas production. 

Lagos, Nigeria’s commercial heartbeat, took its place on the table in 2016 when it was officially declared an oil-producing state in Nigeria, following the discovery of crude oil in OML 113 by Yinka Folawiyo Petroleum Company Limited in Badagry, Lagos 

According to Komolafe, the oil blocks  are located off the city of Lagos, rather than off the coast of the Niger Delta further to the east where most of the country’s oil industry is concentrated, he said.

Also read:

The decision to put up the assets for sale is coming months after the NUPRC concluded the disposal of 57 marginal fields after a long and winding process to ramp up the country’s struggling oil production efforts.

Nigeria’s oil output fell to a multi-decade low of fewer than 1.2 million barrels per day in September and has almost halved since the first quarter of 2020.

The government blames rampant crude theft on the pipelines that crisscross the Niger Delta for shutting down wells and killing off investment.

In recent years, deep-water production led by international companies such as Shell Plc and TotalEnergies SE has accounted for about 35 per cent of oil output but its share has risen this year as onshore operators have struggled.

In addition to granting new licenses, the government is encouraging current block-holders to develop more of their offshore acreage.

Earlier this month, the NUPRC also resumed a separate bidding round for firms interested in commercialising gas that is burned off – or “flared” – by oil producers.

While Nigeria possesses Africa’s largest proven gas reserves, over 208 TCF, most of it is untapped, flared or re-injected into oil wells currently.


Nigeria targets 400,000bpd from Owowo, Bonga

He explained that following the approvals for Field Development Programmes (FDP) for some of the 2020 marginal field bid investors, the commission is optimistic of exceeding the OPEC quota.

OML 65: Sirius concludes $200m loan deal with Trafigura

OML 65 is a producing onshore block with 2P reserves of 51 mmbbls.   The existing producing field, Abura, which has been in production since the 1970s, has been ascribed 16.2 mmbbls remaining 2P reserves1 and is currently producing c.10,500 bopd.

Nigeria engages Wood Mackenzie for seven deep offshore blocks bid process

He noted that the the Mini Bid Round is a market-driven programme expected to outperform the last bid round which held in April 2007 during which a total of 45 blocks were put on offer under a different regulatory regime (the Petroleum Act, 1969). 


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Nigeria’s Minister of State for Petroleum resigns

Sylva’s resignation comes at a time of political transition in Nigeria, with President Muhammadu Buhari serving his final weeks in office before giving way to President-elect Bola Tinubu on May 29.


Our attention has been drawn to a sponsored sensational report by some online publications on a charge brought against the Bank. 

Egbin Power boosts nation’s supply, restores sixth unit

It said: “We are pleased to announce the successful restoration of ST-6 after extensive repairs, including replacement of HIP & LP steam turbine blades and Generator overhauling, in addition to the in-house inspections for Boiler and Balance of Plant.

Transcorp Plc delivers strong performance as revenue rises by 21%

The conglomerate saw a 7% increase in its Power investments, despite the challenges faced in the year from the issues with gas supply, off the diminished Oil & Gas production in the country in 2022. 

Recent Comments