As investors begin registration for the 2024 Licensing Round, the Nigerian Upstream Petroleum Regulatory Commission has removed five oil blocks from the ongoing licensing round due legal disputes.
The five oil blocks are said to be under various litigation.
The Nigerian Upstream Petroleum Regulatory Commission confirmed the development.
The affected assets are PPL3008, PPL3009, PML51, PPL267, and PPL268.
According to reports that the five blocks were among the 12 initially announced by the NUPRC Chief Executive, Gbenga Komolafe, at the Miami International Roadshow for the 2024 licensing round hosted by the NUPRC in collaboration with the Petroleum Technology Association of Nigeria and Zetse Advisory & Consulting.
The 12 oil blocks initially listed by Komolafe were PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271.
However, while announcing that the assets on offer would be increased, the NUPRC said five others were removed because of legal disputes.
“Due to newly acquired data from the Multiclients, the Assets on offer in the ongoing Licencing Round will be increased.
“However, PPL3008, PPL3009, PML51, PPL267, PPL268 have been removed from the Bid process due to ongoing litigation,” the NUPRC said in a notice.
The NUPRC added, “Also, in accordance with the published guidelines, we have earlier indicated that some of the assets on offer should be applied as a single unit, namely: PPL 300-CS & PPL 301-CS, PPL 2000 and PPL 2001.”
Officials of the commission did not reply to inquiries from our correspondent on who the litigants are and the reasons for the litigation.
Meanwhile, the NUPRC boss had in a statement announced the addition of 17 deep offshore oil blocks to the 2024 licensing round.
During the pre-bid conference held recently in Lagos, it was announced that President Bola Tinubu had reduced the signature bonus payable by successful bidders from around $200m to $10m.
According to Komolafe, the NUPRC surveyed what other countries like Brazil demand as signature bonuses from would-be investors and discovered the need to slash that of Nigeria.
