New Billionaires Set to Join Dangote, Others as FG Begins Screening Bidders for 2024 Oil Block
- The NUPRC has started the technical screening of financially eligible bidders for the 2024 licensing bid rounds
- The commission would evaluate each company's technical capacity to operate the oil blocks on which it had placed a bid
- The report states that 29 of the blocks are in the Niger Delta and two are in the Bida Basin
Legit.ng journalist Zainab Iwayemi has over 3 years of experience covering the Economy, Technology, and Capital Market.
The technical screening of financially qualified bidders for the 2024 licensing bid rounds has begun by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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For this stage, the commission stated that it would assess each company's technical ability to run the oil blocks that it had bid on.
The commission said in a release that 31 oil blocks are up for auction, including two onshore blocks, three continental shelf blocks, and 26 deep offshore blocks.
According to reports, two of the blocks are located in the Bida Basin, while 29 are located in the Niger Delta.
Next stage in oil block bidders' screening
At the moment, The Punch reported that the exercise is in the technical and commercial Bid phase for data access, data purchase, evaluation, bid preparation and submission. This is expected to last until November 29, 2024.
“Currently, the licence round is the Technical and Commercial Bid Phase for Data Access, Data Purchase, Evaluation, Bid Preparation and Submission which is expected to last until 29th November 2024. Thereafter, the Technical Bids will be evaluated and qualified technical companies will be notified on or by 9th December 2024 for submission of commercial bids,” the commission stated.
It stated that only businesses that passed the technical bid examination would be eligible to submit a commercial bid.
“The Commercial Bid Conference, which will signify the end of the bid rounds, will only involve companies that have passed the Technical Bid Evaluation in line with published evaluation criteria. The Preferred Bidders of any blocks on offer will emerge based on the set commercial criteria.
“All companies that submit commercial bid will be required to provide performance security in the form of a letter of credit or performance bond issued by a bank acceptable to the commission or parent company guarantee in an amount equivalent to 2.5 per cent of the work commitment upon the grant of the licence to guarantee the fulfilment of the minimum expenditure committed to the implementation of the work programme.
”Finally, the winner of a block will be presented for ministerial approval and thereafter contract negotiation,” the commission explained.
FG speaks on selling Shell’s asset to another oil firm
Legit.ng reported that The Nigerian government, via the Nigerian Upstream Petroleum Regulatory Authority (NUPRC), had rejected the proposed $1.3 billion sale of onshore oilfields to the Renaissance Group, citing the buyer’s lack of capacity to manage the assets.
The asset owner, Shell, disclosed that it was furnishing the regulator with the required information.
However, the NUPRC declined to approve the sale, saying that the Renaissance Group was unable to prove it could manage the assets.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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