The Petroleum Technology Association of Nigeria (PETAN) has predicted that the nation’s Petroleum Industry Act (PIA) will enhance the success of the 2024 oil bidding round.

Wole Ogunsanya, PETAN chairman, disclosed this at the just-concluded Offshore Technology Conference in Houston, Texas, U.S.

Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), had said Nigeria would be placing 19 blocks.

These include 12 Petroleum Prospecting Leases, PPLs 300, 301, 3008, 3009, 2000, 2001, 267, 268, 269, 270, 271 and Petroleum Mining Lease, PML 51, and the Deep Offshore Blocs, PPLs 300, 301, 302, 303, 304, 305 and 306 before the local and international buyers for purchase.

Mr Ogunsanya said the PIA is comprehensive legislation that promotes restructuring, streamlining, transparency, and accountability in the oil and gas sector.

The PETAN chairman said PIA facilitates investors’ confidence and participation by simplifying the investment process.

According to him, it also offers clear returns on investments.

“We are seeing the good work that NUPRC is doing. The bid round will be successful. We are talking about big oil fields. These are deep water assets where billions of dollars will be spent. Of course, NUPRC will ensure that we attract the right investors.

“Some investors are already operating in Nigeria while others will come from outside the country. All we need to do is to present the assets to them,” he said.

Mr Ogunsanya noted that creating an environment encouraging investment benefits the industry and ensures broader macroeconomic implications. He explained that the revenue generated from these investments could be channelled into developing other sectors of the economy.

The PETAN boss highlighted the need for such investment in critical infrastructure, such as power assets, which would help improve the quality of life for Nigerians.

“The government is charging a reasonable signature bonus. This will enable investors to inject more resources into funding their capital projects, produce commercial oil and gas, and impact Nigeria’s economy,” he added.

Mr Ogunsanya expressed the commitment of the association and members to enhancing the bidding round. 

He said, “All of our executive members are determined to make sure the bidding round is successful. We used to have meetings till late at night back home in Nigeria. We made sure we covered all the aspects of the OTC.

“A lot of oil was burned in the background. A lot of very smart chief executives did their best. Many of them have been doing these for 30 years, and their companies are successful.

“All of my executive members, from top to bottom, I trust every one of them that whatever assignment that we have for them is going to be done.”

(NAN)