The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) may conduct a new oil bid round amidst low oil production and reserves.
The commission also said the ongoing divestment of assets by international oil companies (IOCs), especially Shell Petroleum Development Company of Nigerian Limited (SPDC) in the SPDC joint venture (JV) assets, would go to the best bidders.
While NUPRC had, earlier in the year, hinted that some oil blocks could be offered in a new bid round, the commission at a dialogue organised by the Nigeria Extractive Industries Transparency Initiative (NEITI) said arrangements were being made for the bid round.
The Chief Executive of the commission, Gbenga Komolafe, said there is a need to strengthen upstream oil and gas operations effectively for optimisation of “our national hydrocarbon resources for enhanced revenue generation and optimum return on investment”.
He said bid round and gas commercialisation are parts of moves to attract investment, create employment, grow reserves, increase production and generate revenue.
Komolafe noted that the activities are carried out with utmost transparency and accountability.
Speaking on Shell’s divestment Renaissance Africa Energy Company Limited (Renaissance), he said: “Our goal is clear at this due diligence meeting: to identify a successor who not only possesses the requisite financial resources but also demonstrates the technical expertise to responsibly manage these assets throughout their lifecycle.”
Komolafe stressed the need to ensure that the inherent environmental and end-of-life liabilities, especially decommissioning liabilities, are accurately identified, and assigned to the party best equipped to bear the associated risks.
This, he said, necessitated a comprehensive understanding of regulatory requirements, industry best practices, and the unique challenges inherent in oil and gas operations.
“Our goal is clear at this due diligence meeting: to identify a successor who not only possesses the requisite financial resources but also demonstrates the technical expertise to manage these assets throughout their lifecycle responsibly.
“Furthermore, we must ensure that the inherent environmental and end-of-life liabilities, i.e. decommissioning liabilities, are accurately identified and assigned to the party best equipped to bear the associated risks. This necessitates a comprehensive understanding of regulatory requirements, industry best practices, and the unique challenges inherent in oil and gas operations.
“The NUPRC is committed to free entry, free exit business principles aimed at encouraging investors in the sector. We understand the importance of providing a stable regulatory framework that encourages investment and confidence. To this end, we have implemented robust measures to streamline regulatory procedures and eliminate unnecessary barriers to investment,” Komolafe said.
