Nigerian Firms To Bid For 26 Oil Blocks With 8.211 Million Barrels Reserves From IOCs

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26 Oil Blocks Divestment: NUPRC Sets August Deadline To Conclude Process

Indigenous oil firms are getting ready to take over oil and gas assets indicated for divestment by International Oil Companies, IOCs.

About 26 of such oil blocks are being considered for sale by Shell Petroleum Development Company, Nigeria Agip Oil Company, Mobil Producing Nigeria Unlimited, and Equinor.

The blocks by estimation have a total reserve of 8.211million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas.

These are considered to have capacity of significantly contributing to the nation’s hydrocarbon resources.

The Federal Government on Friday announced intention of the major oil companies to divest those assets.

At a dialogue session on divestments by IOCs in Abuja, the Chief Executive, of the Nigeria Upstream Petroleum Regulatory Commission, NUPRC, Gbenga Komolafe, gave the assurance of transparent process during the exercise.

Komolafe said the dialogue was organised by the Commission to give insight and guidance, as well as consider due diligence and interrogation on compliance with the laws and processes that govern the proposed divestment of oil and gas assets by international oil companies to indigenous companies.”

The Chief Executive said, “A total of 26 blocks are proposed to be divested.

These blocks have an estimated total reserve of 8.211million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas.

“Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of non-Associated Gas.

“It is worth noting that a substantial part of the P3 reserves is located in or near producing assets. This means that a competent successor could easily mature them to 2P reserves.”

He added that the current average production from these blocks was 346,290 barrels per day.

The NUPRC Chief stated that the average oil production from NAOC was 28,018 bpd; MPNU, 159,378 bpd; Equinor, 36,155 bpd; and SPDC, 122,739 bpd.

“But the technical production potential is much higher – standing at 643,054 barrels (NAOC -147,481 bpd, MPNU – 244,268 bpd, Equinor – 39,203 bpd, and SPDC -212,102 bpd).

“These blocks have the potential to significantly boost our national production, which would benefit all stakeholders,”.

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