April 03, (THEWILL) – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a new deadline for the submission of Technical/Commercial bids in respect of the 2022/23 Deep Offshore Oil block Mini-bid Round.
The Chief Executive of the NUPRC, Engr Gbenga Komolafe, in a statement released on Saturday disclosed that the extension was designed to accommodate the participation and approval of the outgoing and incoming administrations of the federal government.
He added that the measure is expected to boost According to Komolafe, the extension of bid submissions for the ongoing mini bid round for award of exploration rights in the nation’s deep offshore sedimentary basins would boost investor confidence about the potential impact of the ongoing political leadership transition in the country and, by extension, the benefits of the Petroleum Industry Act (PIA).
“Consequently, the deadline for the submission of Technical/Commercial bids has been shifted to May 19, and the timeline for concluding activities of contract negotiations and signing has been moved to fall between July 3 and 28, 2023”, the agency said.
The commission also pointed at “the need to guarantee participation of qualified indigenous companies, working collaboratively with multinationals and the International Oil Companies (IOCs) to leverage technology, funding and expertise in the deep offshore.”
Komolafe stated that President Muhammadu Buhari has approved the amendment of the bid round calendar to accommodate the concerns expressed by both local and international investors over the closeness of the schedule to the terminal date of the present administration in the country.
It added that “the technical/commercial bid submission involves data access, purchase, evaluation, bid preparation and submission; bid evaluation and publication of results was well as commercial bid conference and announcement of winners.”
The NUPRC boss stated that processes would guarantees delivery of the objectives of the exercise and benefit to stakeholders.
He observed that the adjustment in the bidding process schedule came in response to concerns over plan to conclude the bid process before transition to the new government and “the need to guarantee participation of qualified indigenous companies, working collaboratively with multinationals and the International Oil Companies (IOCs) to leverage technology, funding and expertise in the deep offshore.”
“The Commission has already announced the requirement for joint venture (JV) arrangements between IOCs and indigenous companies and amended the Guidelines accordingly. This measure not only addresses the second concern, but is also in consonance with, and supports the Nigerian Content requirements of the Bid Round.
“It is also in accordance with Section 16(1)(a) of the Nigerian Constitution which provides that resources of the nation shall be harnessed in a manner that promotes national prosperity and efficient, dynamic and self-sustaining economy.
“The extension of time is also to afford interested multinationals and IOCs enough time to enter into, and conclude the necessary joint venture arrangements as well as allow for proper evaluation of relevant data by all bidders,” the Commission stated.
The outstanding activities for the conclusion of the exercise include the technical/commercial bid submission and the ministerial consent/contract negotiation and signing.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
