Nigeria has officially tendered 50 oil and gas blocks, aiming to attract up to $10 billion in investments over the next decade. This initiative is projected to boost the country’s production capacity by an additional 400,000 barrels per day. The blocks include 15 offshore deposits, 19 frontier fields, and one deepwater block, according to Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement, Komolafe emphasized the importance of “certainty and predictability” in attracting investment amid today’s unpredictable global energy landscape. He noted that the NUPRC has enhanced its data capabilities, reprocessing thousands of kilometers of 2D and 3D seismic data. This effort aims to provide clearer, higher-resolution images of Nigeria’s petroleum systems, thereby reducing uncertainties that have previously impeded exploration activities.
The tender announcement first came in November, as the commission highlighted its ongoing efforts to foster investment in the sector. Since the beginning of 2023, a total of 46 field development plans have been approved, with the active rig count exceeding 60. Crude oil output has also seen an increase, climbing to 1.71 million barrels per day, and peaking at 1.83 million barrels.
Recent final investment decisions further illustrate renewed confidence among investors in Nigeria’s oil and gas market. Notable investments include $5 billion for the Bonga North project, $500 million for Ubeta Gas, and $2 billion for Shell’s HI Gas project. These decisions reflect a significant commitment to expanding Nigeria’s energy capabilities.
Major oil companies are increasingly reinforcing their presence in Nigeria, signaling progress from the government in creating a more favorable investment climate. For instance, Shell recently completed the acquisition of an additional 10% interest in Nigeria’s OML 118 Production Sharing Contract, raising its stake in the deepwater Bonga field from 55% to 65%. This move underscores Shell’s dedication to enhancing upstream production in the region.
Moreover, TotalEnergies has sold a 40% stake in two offshore exploration licenses to Chevron while retaining another 40% in the acreage, continuing as the operator of the projects. A senior executive from TotalEnergies remarked that this partnership with Chevron would help mitigate risks and foster new opportunities within Nigeria’s dynamic oil sector.
Nigeria’s strategic push to open new oil and gas blocks represents a significant effort to revitalize its energy sector amidst global challenges. As the country seeks to bolster its production capacity and attract substantial foreign investments, the implications for both local and international stakeholders could be profound.
