Nigeria Opens Frontier Lake Chad Oil Blocks Despite Security Challenges
Nigeria has offered investors oil blocks near its northeastern border in the Lake Chad basin, a region where conflict with Islamist insurgents has persisted for decades, as the country pursues ambitious production targets. Out of 50 oil blocks in the latest bidding round offered by Africa’s top crude producer, four are located in the Lake Chad basin, according to the Nigerian Upstream Petroleum Regulatory Commission.
The Lake Chad area, which reaches into Nigeria, Chad, Niger, and Cameroon, has been the site of ongoing battles with jihadi groups including Boko Haram and Islamic State West Africa Province, known as Iswap. These groups have sought to control territories and engaged in deadly clashes across the region. Currently, no wells are producing in northern Nigeria, with the bulk of drilling operations concentrated in the Niger Delta’s onshore and offshore fields.
Nigeria pumped approximately 1.4 million barrels per day last year, according to NUPRC data. President Bola Tinubu has set an ambitious target to more than double that amount by 2030. The bidding round aims to grow oil and gas reserves through aggressive exploration and development efforts, according to the prospectus for the sale.
Companies entering bids will pay bonuses of as much as $7 million per block and are allowed a maximum of two blocks. Winners will be announced at an event in Abuja in the coming months.
Source: worldoil.com
