Minister of State for Petroleum Resources (Oil), Sen Heineken Lokpobiri, has said the 17 oil blocs put forward for sale under the 2024 licensing bid round are not for politicians, but for investors with financial capacity and technical competence.
He disclosed this during a conference organised by the Petroleum Technology Association of Nigeria (PETAN), at the ongoing 2024 Offshore Technology Conference (OTC), in Houston, Texas U.S. according to a statement on Wednesday.
The conference has the theme “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective).
The minister said in the past the award of oil blocs culminated in the non-development of over 90 per cent of marginal fields.
This, he said, denied the Federal Government of reaping the intended benefits because such awards were not based on technical and financial considerations.
“We have noticed a lot of idle blocs and little or no investment done on them in the last three years of acquiring them.
“I can tell you for a fact that over 90 per cent of owners of these oil blocs are seeking renewal without commencing or investing in them.
“In this regard, we are saying no more to that, and hence, those seeking blocs must be financially and technically capable of turning it around and not mere portfolio investors.
“These set of investors are those we consider as men and not boys in the industry. The blocs are not for politicians. So, we are downplaying that kind of investor in these new bid rounds.
“However, we have taken away the 200 million signature bonus tied to bloc’s ownership.
“What we have tried to achieve is to tie such to operations and investment which will encourage investors and drive investment speedily on a field.
“I have worked closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to ensure that we achieve a seamless transition and bid round sales this year”, he added.
