… Engr. Ogunsanya touts reasonable signature bonus as irresistible lure for investors
… Dr. Amao sets to lead NUPRC upcoming roadshow in London
Oredola Adeola
The Petroleum Technology Association of Nigeria (PETAN) has emphasized that the Petroleum Industry Act (2021) which establishes the legal, governance, regulatory, and fiscal structure for operations in Nigeria’s petroleum sector, would pave the way for a successful oil bidding round in 2024.
The Association has also encouraged potential investors eyeing Nigeria’s oil bidding process to capitalize on the government’s reasonable signature bonus.
Engr. Wole Ogunsanya, Chairman of PETAN, disclosed this at the just concluded Offshore Technology Conference (OTC) in Houston, Texas U.S.
According to him, PETAN is dedicated to sustaining and growing the energy sector business in Nigeria, as well as strengthening partnerships to ensure safe, reliable, and efficient operations in the country.
“As we engage all the relevant stakeholders in the oil and gas sector, we want to assure them that our members with decades of experience in the industry, have all the equipment required to boost oil production in the country.
Speaking on the Roadshow by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), PETAN predicted that the nation’s Petroleum Industry Act (PIA) will enhance the success of the 2024 oil bidding round.
Advisors Reports gathered that Engr. Gbenga Komolafe, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced during the 2024 bid round roadshow at the Offshore Technology Conference (OTC) in Houston, Texas, U.S. that Nigeria would be placing 17 oil blocks up for sale to local and international buyers.
The blocks include 12 Petroleum Prospecting Leases (PPLs): PPL 300, PPL 301, PPL 3008, PPL 3009, PPL 2000, PPL 2001, PPL 267, PPL 268, PPL 269, PPL 270, PPL 271, and Petroleum Mining Lease (PML) 51.
Additionally, five deep offshore blocks from the 2022 Mini-Bid Round Exercise covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m will also be included in this licensing round.
Ogunsanya said that the PIA is a comprehensive legislation, designed to bring about restructuring, streamlining, transparency, and accountability in the oil and gas sector.
The PETAN chairman said that PIA will guarantee investors’ confidence and participation by making the investment process more straightforward. According to him, it also offers clear returns on investments.
He said, “We are seeing the good work that NUPRC is doing. The bid round will be successful. We are talking about big oil fields.
“These are deep water assets where billions of dollars will be spent. Of course, NUPRC will ensure that we attract the right investors.
“Some investors are already operating in Nigeria while others will come from outside the country. All we need to do is to present the assets to them,” he said.
Ogunsanya noted that creating an environment that encourages investment not only benefits the industry but also ensures broader macroeconomic implications.
He explained that the revenue generated from these investments could be channeled into developing other sectors of the economy.
The PETAN boss highlighted such investment to include critical infrastructure like power assets, which would help to improve the quality of life for Nigerians.
“The government is charging a reasonable signature bonus.
“This will enable investors to inject more resources into funding their capital projects, produce commercial oil and gas, and impact Nigeria’s economy,” he added.
Ogunsanya also affirmed the dedication of PETAN to ensuring a successful bid round roadshow, one of which will be led by Dr. Lola Amao, an executive of PETAN, during the upcoming event in London organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
He said, “All of our executive members are determined to make sure the bidding round is successful.
“We used to have meetings till late at night, back home in Nigeria. We made sure we covered all the aspects of the OTC.
“A lot of oil was burned in the background. A lot of very smart chief executives did their best. “Many of them have been doing these for 30 years and their companies are successful.
“For the NUPRC roadshow, we supported NUPRC in Miami, it was led by one of the executives of PETAN. The roadshow in London will be led by Dr. Lola Amao, PETAN is doing a lot, not only with the federal government but also with state governments.
“A lot of people are looking for jobs. We have hundreds of universities and engineering schools. It is good to start from somewhere. Some of us who started our business over 20 or 30 years ago are at the same level as any multinationals anywhere in the world. But it takes time to build the right capacity.”
He also said: “This exercise is under the exclusive responsibility of NUPRC. We have confidence in NUPRC’s leadership that they will do the right thing. We aim to support the foremost professional organization in Nigeria.
“We are bringing experts to the industry. We are also showing them that the assets are promising. In Nigeria, we have all the services that are required to bring the oil out of the ground. That explains why we are bringing our partners to Nigeria.”
“We have about 37 billion barrels of oil reserves. There is a lot more on the ground, especially in the deep offshore. By selling the assets, we look forward to increasing our reserves and production capacity. This will allow OPEC to permit us to produce more.
“In the end, what we are doing will impact Nigeria’s economy and improve the lives of our people,” he said.
The Chairman of PETAN, while discussing the success of the OTC participation, shared insights on the Nigerian delegation’s experience.
According to him, the exceptional opening ceremony set a positive tone for the event, while the panel sessions were particularly noteworthy for their significant impact on the Nigerian oil and gas industry.
“Additionally, the overall organization and execution of various programs were commendable, reflecting thorough planning and successful implementation.
“I think we have done well” Engr. Ogunsanya said.
He emphasised the readiness of PETAN to work more closely with the NUPRC and other government authorities to ensure that PETAN takes her rightful place in the industry and influences decisions for the good of her members and the industry at large.
