Oil Bid Round: FG Assures Conducive Investment Environment for Investors
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has pledged the country’s commitment to break all entry barriers for would-be investors. Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, gave the assurance during the opening of the Nigerian Pavilion at the Offshore Technology Conference (OTC) on Monday in Houston, U.S.
Komolafe said this was as it is committed to giving robust incentives to new entrants, following the beginning of the 2024 oil bid licensing round. In keeping with President Bola Tinubu’s directive, he continued, investors hoping to bid on assets in the 2024 licensing round could be confident of a smooth entry and need not be concerned about any obstacles.
According to him, it is heart-warming to note that Nigeria’s licensing round is coming at the same time Guyana is holding the same. Komolafe said that the offer by Nigeria as an investment destination of choice creates an opportunity for them to make the right choice. He said that there were 12 oil blocks up for grabs in the 2024 oil bid licensing round.
He noted that the aim of the 2024 oil licensing round is to grow the country’s depleting oil production numbers and oil reserves. He emphasized that the Federal Government’s efforts to increase Foreign Direct Investment (FDI) would be strengthened by the oil bid round.
According to him, another gain associated with the bid round is an opportunity for the country to grow its local content capacity. The NUPRC boss said the 2024 OTC is an opportunity for the country to market its oil and gas potential to the global community.
Earlier in his remarks, the Minister of State for Petroleum Resources, Mr Heineken Lokpobiri, assured investors that oil would remain relevant for a long time. He disagreed that oil could remain irrelevant, urging investors to take advantage of the oil bid round to make investments.
“Historically, no source of energy goes away. So do not be deceived into thinking that fossil fuels will go away. Talks at the recent global conferences have further proved that fossil fuel will continue to remain, the quicker we extract our oil, the better for us as a country,” Lokpobiri said.
He reaffirmed that the quickest way towards economic recovery for Nigeria was through oil and gas investment. The minister said the country’s huge oil and gas deposits would mean nothing if they remained on the ground and were not explored.
In his remarks, Mr Wole Ogunsanya, Chairman of Petroleum Technology Association Nigeria (PETAN), said the OTC continued to discuss on building a sustainable oil and gas industry across Africa in light of the energy transition.
Ogunsanya commended the minister for honouring the association in declaring the Nigerian pavilion open.
He also lauded the support of NUPRC and other stakeholders in supporting Nigerian companies at the 2024 OTC exhibition ground. He said: “The fact is that Africa requires sustainable energy sources to meet the growing needs of all sectors of its economy, and the energy transition is a crucial enabler of sustainable development. Project Monitoring, Evaluation Key to Successful Outcomes – Cardoso
