Nigeria's Bold Move: Auctioning Oil and Gas Blocks to Boost Economy

Nigeria will hold an auction for undeveloped oil and gas blocks next year, focusing on natural gas to align with UN Sustainable Development Goals. This will be the third auction since 2021, aiming to increase oil production to support government financial requirements.


Devdiscourse News Desk | Updated: 18-12-2024 22:20 IST | Created: 18-12-2024 22:20 IST
Nigeria's Bold Move: Auctioning Oil and Gas Blocks to Boost Economy
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Nigeria is poised to auction off undeveloped oil and gas blocks in the coming year, with particular emphasis on advancing its natural gas sector. This initiative is aligned with the nation's commitment to achieving the United Nations Sustainable Development Goals, according to a statement from the oil regulator issued on Wednesday.

Marking the third such auction since an extensive oil reform law was passed in 2021, the move is part of strategic efforts to boost oil production, thereby enhancing the financial capacity to fund government expenditures. According to Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, the licensing round is not just for commercial gain but serves as a significant announcement of Nigeria's openness to business opportunities.

Komolafe also revealed that the bidding process for new offshore oil blocks initiated in February has concluded, and successful bidders are expected to receive their licenses within the next few months, solidifying Nigeria's position in the global energy market.

(With inputs from agencies.)

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