ERHC Energy Inc (ERHE)

[Gigwoof]

Nigeria: 350 applicants scramble for 75 oil blocks



28/06/2005



In an over-whelming response to the Federal Government 2005 licensing round for oil blocks, 284 operators and prospective oil and gas field exploration and production block operators have made 350 applications for 75 oil blocks.

Mr. Tony Chukwueke, Director of the Department of Petroleum Resources (DPR), made the disclosure yesterday in Lagos on developments following the closure of receipt of expression of interest in the bidding round.

He suggested the number of applications received was by far in excess of what the government had anticipated and added that the set target was exceeded by 200 and will be an enormous amount for the team.

Chukwueke also said the DPR had closed down a whole section to get all the applications evaluated. "The Adviser already said the shift in registration deadline was internal to the process and that the bidding conference slated for first week of August that still stays. That is what we are working on," he said.

On the classification of registration, the director said all the six major oil and gas exploration and production companies operating in the country were applying. "As at the last count, we have a total of 79 foreign operators and 33 Nigerian operators. The rest are Nigerian individuals and companies, one way or the other, who want to become LCV (Local Content Vehicles), which means that we have managed to excite a whole lot of Nigerians.

"We have over 170 of them competing for 30 to 40 positions and the objective is to bring development in deep water, the Niger Delta as well as inland basins in pushing up our reserves and production. Currently, our target is to go to 40 billion barrels. It is a long way to go. But it is a major objective of 2005 bid round," he said.

He also explained that contrary to what some industry operators claimed about the bidding round, the closure recently announced only signalled closure of expression of interest in the bidding process and not a closure of the bidding.

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