President Muhammadu Buhari approved the 2022/2023 deep sea oil block mini-bid round amendment.
He Nigerian Upstream Regulatory Commission (NUPRC) Chief Executive Officer Gbenga Komolafe revealed this in a statement on Saturday.
Komolafe said the approval was in an attempt to increase confidence in the transparency and continuity of the mini-bid round process for deepwater oil blocks.
He added that the measure was to accommodate the concerns expressed by both local and international investors about the closeness of the schedule to the termination date of the current administration in the country.
“Following the approval of President Buhari in his capacity as Minister of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revised the schedule of the Deep Offshore Oil block bidding round by extending the Deadline for submitting technical/commercial offers is May 19. 2023, as well as the schedule to conclude the contract negotiation and signing activities between July 3 and 28, 2023,” he said.
According to him, the 2022/23 deepwater oil block mini bidding round is progressing according to the bidding round schedule that has been published as part of the bidding round guidelines.
“The pending activities for the conclusion of the fiscal year include the presentation of the technical/commercial offer and the negotiation and signing of the consent/ministerial contract.
“Technical/commercial bid submission involves data access, purchase, evaluation, bid preparation and submission, bid evaluation and publication of results, as well as business bid conference and announcement of winners “, said.
Therefore, he reiterated that the commission is fully committed to conducting the bidding round in a manner that ensures the achievement of the objectives of the exercise, noting that participation is robust and beneficial to key stakeholders.
However, he said that the constant questioning and monitoring of the process revealed two concerns that the commission felt could affect the success of the exercise if not addressed immediately.
“The concerns are the plan to conclude the bidding process before the transition to the new government and the need to guarantee the participation of qualified indigenous companies, working in collaboration with multinationals and International Oil Companies (IOCs) to take advantage of technology, financing and experience in the depths of the coast”, he added.
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He said the commission has already announced the requirement for joint venture (JV) agreements between IOCs and indigenous companies and amended the guidelines accordingly.
This move, he said, not only addresses the second concern, but is also in line with and supports the bidding round’s Nigerian content requirements.
“It also agrees with Section 16(1)(a) of the Nigerian Constitution which states that the nation’s resources shall be harnessed in a manner that promotes national prosperity and an efficient, dynamic and self-sufficient economy.
“The extension of time is also to give interested multinationals and IOCs sufficient time to enter into and conclude the necessary joint venture agreements, as well as to allow a proper assessment of the relevant data by all bidders,” it said.