• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Nigeria Awards 27 Oil Blocks to Foreign Companies

Posted on: Monday, 29 August 2005, 12:00 CDT

Nigeria awards 27 oil blocks to foreign companies

ABUJA, Aug. 28 (Xinhua) -- The Nigerian government awarded 27 oil blocks to multinationals, consortia as well as national oil companies of Norway and Brazil in the 2005 licensing round, in the capital Abuja at the weekend.

The auctions were witnessed by Nigerian Minister of State for Petroleum Resources Edmund Daukoru and stakeholders.

In all, 78 oil blocks were offered, for which 379 bids were received.

All the bid winners had agreements with the government to establish refineries or power plants.

The exercise would fetch the Nigerian government between 1 billion and 2 billion US dollars as signature bonuses.

Speaking on the occasion, Daukoru said the ongoing reforms in the oil sector gingered the open bidding process, pointing out that the government would no longer engage in discretionary awards of oil blocks.

"We are by this event attempting to send a clear message to the oil industry and the world that Nigeria has turned the corner and the management of the oil and gas sector can indeed be transparent, " he said.

He said the award has an in-built local content vehicle concept aimed at encouraging local firms to participate in the upstream sub- sector.

"We have deliberately reserved 10 percent equity for our local companies, so as to encourage them to participate in the upstream oil sector," he said.

The minister said unsold blocks would be offered in the next licensing round before the end of this administration.

The bid conference attracted investors from the UK, Asia, the Americas as well as national oil companies in Africa.

Source: Xinhua News Agency - CEIS

More News in this Category