The Nigerian Senate have signaled their support for the licensing round for 12 new oil blocks and 7 old blocks from the 2022 mini-bid round.
The lawmakers are also optimistic that they will back laws that will engender growth in the oil and gas sector as well as secure the multi-billion dollar investments of both local and foreign investors who are interested in the 19 oil blocks.
The Chairman of the Senate Committee on Petroleum Resources, Sen. Eteng Williams and the Chairman, the House Committee on Petroleum Resources, Rt. Hon. Ado Doguwa made the promise during an investor call in Miami, Florida, USA.
The lawmakers representing the committees spoke on Tuesday at the Miami International Roadshow for the 2024 licensing round hosted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in collaboration with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.
The Nigerian government is desperately searching for investments that will shore up the country’s production capacity above the current 1.3m barrels per day.
To convince investors, Senator Eteng told International Oil Companies like ExxonMobil, Chevron and others present at the event that the licensing round has legislative backing.
Eteng said, “Nigerian government is committed to creating a conducive regulatory framework that promotes investment, transparency, and accountability in the upstream petroleum sector to enable optimal exploitation for shared prosperity.
“In this regard, recent legislative and regulatory reforms have enhanced the ease of doing business, streamlined licensing processes, and provided greater certainty to investors.”
He praised the NUPRC for effective implementation of the provisions of the Petroleum Industry Act through investor-friendly regulations that encourage investment and innovation in the upstream petroleum sector.
Similarly, the House Committee Chair, Doguwa, said that investing in Nigeria’s upstream sector is a sound business decision, adding that it is also a strategic move in addressing the growing global energy demand.
He said Nigeria has a rapidly expanding population coupled with rising global energy need that may increase exponentially in the coming years.
He said, “By investing in Nigeria’s energy sector, investors can play a vital role in meeting this growing demand and fostering inclusive growth and socio-economic empowerment through job creation, skills development, and local content participation.
Doguwa said, “We assure you of the Nigerian government’s commitment to policy consistency, investor-friendly regulations and good business climate.
“We also assure you of openness, fairness, transparency and competitiveness in the licensing round processes in line with the provisions of the Petroleum Industry Act.”
A step in the right direction to shore up Nigeria's oil & gas production to meet up with our OPEC daily allocation and increase foreign direct investment
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