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The federal authorities has concluded plans to public sale 7 deep offshore oil and gasoline blocks for the primary time in 15 years, off the town of Lagos within the month of November.
That is coming at a time the Nigerian authorities is making an attempt to ramp up crude oil manufacturing and deal with the rising instances of oil theft and pipeline vandalism, particularly within the Niger Delta area of the nation.
This was made identified by the chief government officer of the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), Gbenga Komolafe, throughout a chat with Reuters on Saturday, the place he stated the fee intends to conduct a clear bidding course of for the oil blocks.
The choice to public sale the deep offshore property is coming months after the NUPRC concluded the gross sales and allocation of 57 marginal fields, mainly for indigenous gamers, after an extended course of to assist enhance the nation’s falling oil manufacturing efforts.
What the NUPRC chief government is saying
Komolafe stated that every one the blocks are within the Lagos waters with proximity to the export free commerce zone within the state and never Niger Delta, the place many of the nation’s crude oil and gasoline deposits, in addition to amenities, are situated.
The NUPRC boss, in the course of the interview, stated, “We’ll announce by subsequent month the intention to conduct a clear bidding spherical for seven oil blocks. All of the blocks are within the Lagos waters, not within the Niger Delta, with the added benefit of its proximity to the export-free zone in Lagos.’’
What you must know
Other than marginal fields, Nigeria final carried out bidding for 45 oil blocks in 2007 even when the courtroom had stopped the sale of two that had been underneath litigation between Shell and the Nigerian authorities.
The final time the federal authorities issued dozens of such permits was between 1993 and 2007, and it was meant to open up the ocean flooring to grease and gasoline manufacturing.
In 2005, then President Olusegun Obasanjo launched an open public sale course of and stated Nigeria would now not award profitable drilling licenses on a discretionary foundation.
Nevertheless, the auctions drew criticism that they had been neither as clear as they need to be nor as profitable when it comes to securing funding in Nigeria.
The deep water offshore crude oil manufacturing, which is dominated by worldwide oil firms (IOCs) like Shell, TotalEnergies, ExxonMobil, and others, had accounted for about 35% of oil output within the nation. This has, nevertheless, elevated as onshore operators battle with vandalism, oil theft, and others.
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