Speculations on the licensing of Oil Blocks appears to have come to an end with the recent announcement by the Group Managing Director of Nigerian National Petroleum Corporation, NNPC, Mele Kyari, that the federal government is poised to launch a new oil licensing round mid 2020 for both onshore and offshore blocks. This is geared to achieve their target of hitting 3 million bpd by 2023.
Many licenses were said to have either expired or been revoked by the Buhari administration, and there has been a divide and rule tactics by the Federal government, according to industry watchers. Newly retired Military Generals are allegedly angling for a piece of the action, which has hitherto been almost the exclusive reserve of their senior colleagues and their allies. The underlying simmering feud informed the political inclination of most old warlords.
Keyari said the bidding will begin after government has concluded consultations with the Oil majors, who may have been piqued by the new Production Sharing Contract, PSC act-though he admitted that Nigeria needs the help of the International Oil companies for increased exploration activities.
Speaking at the opening ceremony of the 2019 conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), he down-played the furor generated by the signing of the PSC amendment bill into law, which President Buhari did during his recent sojourn in London.
“Despite the Deep Offshore Amendment Act, this is a business, there is room for commercial conversation. I do not believe the level of anxiety or worries that the passage of the deep Offshore Amendment Act has caused. I believe it is unnecessary.”
As regards the PSC bill, there has been restiveness particularly on the side of the oil majors who are currently making phased divestment plans.
