In a bid to attract fresh investments and ramp up oil output, the Federal Government yesterday, announced the removal of the signature bonus requirement in bidding for
The minister assured investors that oil will remain relevant in Nigeria’s economy for a long time and that the government is creating an enabling environment that will attract the best of investments into the country. He said to ensure investors have a soft landing, such payments will now be tied to immediate exploration and production activities by new entrants.Lokpobiri noted: “Rather than pay such monies into the coffers of the Federal Government, the investor must now be able to prove to us that they have the funds required to move into exploration.
He added that it would culminate in further increasing the nation’s oil and gas reserves, currently standing at 37.5 billion barrels of crude oil and condensate reserves and 209.26 trillion cubic feet of natural gas reserves. ‘’In keeping with the provisions of the PIA and regulations made under the Act, the commission has issued a licensing round guideline and published a licensing round plan for the twelve blocks .
Recall that in 2022, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, disclosed that it realised N174 billion from signature bonuses paid by winners in the 2020 marginal oil fields licenses, while it revoked those of 33 companies for failing to meet the 45-day deadline required to pay the signature bonus for the fields.A total of 57 fields were on offer with 665 companies indicating interest to acquire them.