The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has released a detailed report on the concession status of 243 oil blocks across Nigeria, dismissing claims that 220 of these assets were abandoned. The announcement, made in the spirit of transparency mandated by the Petroleum Industry Act (PIA) 2021, aims to clarify misconceptions and boost investor confidence, including for businesses in Rivers State, a key hub for Nigeria’s oil industry. The NUPRC emphasized that these blocks are not idle but are awaiting allocation through upcoming licensing rounds, with a new bid round planned for 2025.
It is worth noting that the commission’s report counters a recent publication suggesting that 220 oil blocks, including 59 in the deep offshore terrain, were abandoned. NUPRC’s Chief Executive, Gbenga Komolafe, clarified that these blocks are active and will be awarded to qualified investors through competitive bidding.“ The 220 oil blocks are simply awaiting concession, as per the PIA’s provisions,” Komolafe stated, urging the media to verify information to avoid undermining Nigeria’s investment climate. The blocks span various regions, with the deep offshore holding the highest number at 59, followed by the Benue Trough (41) and Chad Basin (40). In Rivers State, where the oil and gas sector drives much of the local economy, stakeholders see this as an opportunity for growth.
Local business owners in Port Harcourt, like Efe Owhofasa, who supplies equipment to oil firms, are optimistic. “Clear information about these blocks means more opportunities for contracts and jobs here,” Owhofasa said. The NUPRC’s transparency move is expected to attract both local and international investors, potentially boosting ancillary businesses in Rivers State. The 2025 licensing round will prioritize undeveloped fields and natural gas development, aligning with Nigeria’s commitment to sustainable energy goals.
It bears mentioning that the commission also highlighted recent successes, noting that 24 blocks were awarded in the 2022/2023 deepwater and 2024 licensing rounds. Despite challenges like high capital requirements for deep offshore blocks, the NUPRC is pushing for a cluster development model to unlock smaller fields and reduce costs. For Rivers State, this could mean increased economic activity as new concessions drive demand for local services. The NUPRC encouraged stakeholders to visit its website for accurate updates, reinforcing its commitment to openness and good governance in Nigeria’s upstream sector.
SOURCE: theportcitynews.com
