In 2023, Nigeria and other top African producers are expected to see an upstream revival and the start of several multi-well drilling campaigns.
This year, at least 26 drilling campaigns and rigs are scheduled to be active in Africa, according to investment research firm Hawilti.
In accordance with the Petroleum Industry Act (PIA) 2021, the federal government has begun the mini-bid round process for 2022.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the mini-bid round represents an opportunity to stimulate new oil exploration and drilling activities in the prospective deep waters offshore Nigeria in 2023.
Gbenga Komolafe, the commission’s chief executive (CCE), stated that the mini-bid round is aimed at further developing the deep offshore acreages.
Grace Goodrich, publications editor at Energy Capital & Power, identified several markets that will be more active than others and will lead the uptick in African upstream activity.
Nigeria, Zimbabwe, South Africa, Namibia, and Chad, in her opinion, are “the places to be” if you work in the African oil and gas industry.
Nigeria’s upstream momentum is being maintained primarily through shallow-water exploration, such as General Hydrocarbons’ drilling campaign on OML 120 and Chevron’s two-year campaign offshore Escravos beginning in mid-2023.
TotalEnergies, a French energy company, will also conduct deep-water drilling as part of its planned infill drilling campaign on OML 130.
Nigeria is attempting to increase its hydrocarbon reserves and reverse declining production through increased exploration and new oil and gas discoveries.
The NUPRC stated that the bid round would be held in accordance with the PIA and its enhanced legal and regulatory frameworks, which aimed to encourage new investors and investments in the region’s next phase of exploration.
“The mini-bid round will be managed by the NUPRC, in line with the provisions of the PIA, as the statutory body responsible for ensuring compliance with petroleum laws, regulations, and guidelines in the Nigerian upstream petroleum industry.
“The National Data Repository of NUPRC and our multi-client partners are delighted and ready to support the Mini Bid Round underpinned by high- quality datasets. The blocks have extensive coverage of 2D and 3D seismic data, including multi-beam and analog data.
“In addition, prospective bidders can access a remarkable quality, 3D MegaSurveyPlus reprocessed Pre-stack Time Migration (completed October 2022), with angle stacks and gathers. The dedicated NUPRC portal contains links to all data.
“The mini-bid round is a market-driven program that will follow a transparent and competitive procurement process designed to attract competent third-party investors from around the world who have the capability and proficiency to operate in deepwater environments,” he said.
The mini-bid round, according to Komolafe, was intended to build on the successes of the previous bid round, which was held in April 2007, and featured 45 blocks drawn from the Inland Basins of Anambra, Benue, and Chad; the Niger Delta Continental Shelf; Onshore Niger Delta, and Deep Offshore.
The mini-bid round is a market-driven program that will use a transparent and competitive procurement process to attract competent third-party investors from around the world who have the capability and proficiency to operate in deepwater environments.
He recalled that the 2007 bid round was held under a different regulatory regime (the Petroleum Act of 1969), and it generated massive interest and participation, as well as the associated revenue, making the exercise a success.
Seven offshore blocks covering an area of approximately 6,700 sq km in water depths ranging from 1,150m to 3,100m were offered in the 2022 mini-bid round, he said.
He stated that the success of the mini-bid round would ensure that all stakeholders gain value from the country’s resources, while also paying close attention to carbon emissions reductions and overall environmental, social, and governance (ESG) considerations.
According to him, the NUPRC has published a dedicated program portal (br.nuprc.gov.ng) for the mini-bid round, and a pre-bid conference has been scheduled for January 16, in Lagos.
According to Komolafe, the conference will give potential applicants the opportunity to ask questions about the mini-bid round processes and requirements, and interested companies will be invited to submit pre-qualification applications by January 31.
He also stated that the NUPRC will provide additional details and a roadmap for this international competitive mini-bid round in the future.
