Nigeria will this year open bids for new offshore oil blocks, the second such auction in two years, the head of its petroleum regulator said on Tuesday, as Africa's biggest oil producer seeks to draw more investment into deepwater projects.
Nigeria has struggled to increase its oil output, largely due to crude theft and sabotage of onshore pipelines, forcing oil majors like Shell and Exxon to sell onshore assets.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) told an oil industry meeting that local and foreign firms could take part in the latest auction, in which the bids would be opened in a closed session.
He said to attract more bidders, the regulator would significantly cut an upfront signature bonus for bidders - a one-off lump sum payment to the government upon the granting of a petroleum exploration, or production licence.
Komolafe said NUPRC had concluded last year's bidding round, when seven offshore blocks in Lagos waters were on offer, the first time that the country had conducted an offshore auction in 15 years.
He, however, declined to name the winners of the bid.
Nigeria's offshore blocks are seen as attractive as they have vast reserves and do not face the challenges of onshore fields, such as sabotage and communal issues.
NUPRC last month announced an annual oil and condensates output target of 2.6 million barrels per day (bpd) by 2026, an ambitious jump from 2023 levels of around 1.6 million bpd.
(Reuters - Reporting by Isaac Anyaogu; Editing by Sharon Singleton)