Nigeria is offering 12 new oil blocks to international investors with financial and technical capability, aiming to enhance the exploitation of its vast oil and gas reserves. The nation, which produces the most oil in Africa, started its licencing process on April 29 in an effort to access its estimated reserves of 209.26 trillion cubic feet of natural gas and 37.5 billion barrels of crude oil.
In response to earlier worries about the transparency of bid awards, Gbenga Komolafe, the head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), promised a fair and transparent procedure. This licensing round will conclude the seven deep offshore blocks from the 2022 mini-bid round in addition to the 12 blocks, for a total of 19 blocks offered in 2024.
The regulator will evaluate bidders’ compliance with Nigeria’s net-zero carbon emissions targets, gas flare elimination, and environmental effect mitigation, taking into account global worries about climate change, in addition to their financial and technical capabilities.
Nigeria has been producing less oil lately, which has led to a move towards deepwater reserves that are less vulnerable to environmental harm and sabotage. In keeping with international trends, the action attempts to address sustainability and environmental goals while luring investment.
