Page 18 - AfrOil Week 26 2021

AfrOil NEWS IN BRIEF AfrOil

In the face of those odds, Auwalu in a speech
announcing the awards, said that at least, half
of the successful marginal field investors have
accepted the offers and have even made the
mandatory payments to signature bonuses to
the Federal Government which is targeting
about $500million income from sale of the new
acreages.
At the presentation of letters to the winners in
Abuja, on May 30, 2021, the DPR Director fur-
ther explained that a total of 591 firms submitted
their Expression of Interest forms, out of which
540 were pre-qualified, while 482 were bids sub-
mitted by 405 applicants.
In the end, 161 companies were shortlisted as
potential awardees, out of which 50 percent have
met all conditions and therefore, are eligible for
awards today. We are set to ensure opportuni-
ties are extended to other deserving applicants
to fill the gap,” he said. However, for oil and gas
stakeholders, one of the major conditions for the revenue generation for the Federal Government, opportunities to international investors.
award of the new acreages to participants is the technology transfer for indigenous oil and com- This Oil Licensing Round aims to attract
payment of signature bonus. munity that are indeed enormous for the nation’s interest from a diverse group of foreign investors
With 50 percent of leases already paid for, it struggling economy. One would also not ignore to a region that is already home to oil and gas
is expected that government would have raked the impact on Local Content Development ini- majors from China and Malaysia. The country
in about $250mn in signature bonuses so far, tiative in the oil and gas industry and its contri- is hoping to welcome back experienced partners
while looking forward to harvesting additional butions to national oil and gas reserves and operators following significant progress in
$250mn from other winners who could not pay The multiplier effects on the economy that returning to peace and stability.
on the day of the award in the weeks and months. often manifest through increase in GDP and job With the new data, analysis, and govern-
Beyond its financial gain to the government, creation/employment cannot be overempha- ment mechanisms, the Ministry seeks to attract
another key objective of the project would be its sised. But unlike similar award programmes in high-quality investors and partners.
potential to increase job opportunities for Nige- the past, the processes leading to the award of the The MoP will use set criteria to facilitate and
rians through fresh investments in the oil and gas 57 marginal field licenses in June of 2021, were evaluate interested parties bidding for the avail-
sector. adjudged the most transparent by the indige- able blocks. The available blocks range between
However, given the dearth of fresh invest- nous oil and gas executives that participated at 4,000 and 25,000 square km, with most compris-
ment in Nigeria’s oil and gas industry over many the bid round. ing between 15,000 and 20,000 square km.
years, the collateral impact of the 57 fresh acreage This was so because the Department of Petro- Currently there are three consortia operating
awards cannot be over-emphasised, especially as leum Resources (DPR), Nigerian Oil & Gas producing blocks in South Sudan, with another
all are 100% indigenous oil and gas companies. industry regulatory agency charged with the four oil exploration companies having acquired
Another critical attribute of the 2021 exer- responsible for the administration of Petroleum production sharing contracts.
cise was with its capacity to further enhance the laws and statutes as well as implementing poli- Producing Blocks: Block 3 and 7 – DAR
technical abilities of Nigerian oil and gas entre- cies on oil and gas activities in Nigeria took steps Petroleum Operating Co.: China National Petro-
preneurs and the sector’s growing manpower to ensure that the conduct was openly trans- leum Corp. (CNPC), Petronas, Nile Petroleum
base now heading to a complete and convenient parent, particularly against the backdrop that it Corp. (8% equity). Block 1, 2 & 4 – Greater Pio-
takeover of management and operations from turned out to be an all-Nigerian affair. neer Operating Co.: CNPC, Petronas, Nilepet
foreigners currently at the commanding heights DPR, June 23 2021 (5% equity). Block 5A – Sudd Petroleum Oper-
of the industry. ating Co.: Petronas, Nilepet (8% equity).
For the Federal Government, raking in an South Sudan launches Awarded Exploration Blocks: Block B3 –
estimated $500mn in signature bonuses from the Oranto Petroleum, Nilepet (10% equity). Block
winners of the marginal oil blocks at a time of first oil licensing round 5B – Ascom, Nilepet (10% equity). Block B2–
acute foreign currency scarcity is no mean feat, Strategic Fuel Fund, Nilepet (10% equity).
aside the project’s complementary role in job South Sudan’s Ministry of Petroleum has Free Blocks: Blocks: A1, A2, A3, A4, A5, A6.
creation even if at least half of the awards could announced the launch of the country’s first oil Blocks: B1, B4. Blocks: C1, C2. Blocks: D1, D2.
come on stream immediately. licensing round. Blocks: E1, E2.
For President Muhammadu Buhari, who had The Ministry of Petroleum (MoP) has iden- First Licensing Round: Block A2, Block A5,
set the target of pulling 100mn citizens out of tified new exploration blocks with potential Block B1, Block B4, Block D2.
poverty trap over the next 10 years, the new mar- hydrocarbons and has compiled crucial data to Potential investors have until August 23, 2021
ginal oil fields awards can be a greater enabler provide to interested investors, operators and to request all relevant information from the Min-
for realising that dream given the multiplier eco- counterparties. According to the new analysis istry of Petroleum by completing the Request for
nomic outcomes of every oil and gas investment. commissioned by the Ministry, approximately Information Form.
A cursory assessment of the projects reveals 90% of South Sudan’s oil and gas reserves South Sudan Ministry of Petroleum, June 23
their multi-dimensional impact on job creation, remain unexplored, providing unprecedented 2021

P18 www. NEWSBASE .com Week 26 30•June•2021