Tony Chukwueke, director of the Department of Petroleum Resources,
Chukwueke said
Yorkshire Energy World Ltd. picked up two deepwater blocks was one of the more obscure companies to do so, raising questions about whether it would have sufficient experience to develop the leases compared with more-established companies operating in
Winning blocks on the Niger Delta Continental Shelf were Moni Pulo Tenoil, Global Energy Co. Ltd., BOC JNHP Consortium, Oilworld Ltd., and Essar Exploration.
Majors" concerns
Oil majors are concerned about how the incoming government will deal with the continuing attacks by militants on oil and gas infrastructure and the kidnapping of expatriates in the Niger Delta, as they increase pressure on the government to give the local oil communities a greater share of the oil wealth.
When the licensing round was launched, the government negotiated rights of first refusal with 10 companies for 20 blocks, including Chinese and Asian companies, who promised in exchange multibillion investments in downstream infrastructure. However, many of these companies did not participate because they were worried that contracts may not be concluded before President Olusegun Obasanjo transfers power on May 29 to his chosen successor Umaru Yar"Adua.
In the bidding round that took place in
For the remaining eight blocks with ROFR along with the other blocks that didn"t attract any bids, all of these will be offered again in Nigeria"s next licensing round, which would be held in the next year or two, Chukwueke said.
Opposing oil companies to the system of ROFR have criticized it because they claim it has undermined the government"s claims of openness and transparency. In his opening remarks, Minister of Energy Edmund Daukoru said the system had been previously introduced in 2005 and that the critics were "creating confusion, with the intension of driving away competition and investors."
Oil and gas analysts attributed the lack of interest to the timing of the round.
PIN/OGJ.COM
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