AfrOil: Nigeria extends submission deadline amid slow interest for oil block auction

Nigeria's planned auction of oil blocks has been delayed due to a lack of investor interest.

The bid submission period will now run from July 8 to November 29, with reduced entry fees (signature bonuses) from around $200mn to $10mn per field to attract more bidders.

According to the Nigerian outlet BusinessDay, citing anonymous sources sceptical about the viability of the government's plan to increase crude production and revenue, this delay is due to investors’ concerns over the terms of the oil blocks.

Despite assurances from the Nigerian Upstream Regulatory Commission (NUPRC) of strong interest, industry insiders speaking to the outlet are worried about unclear deepwater fiscal terms, adding more blocks to the auction, and possible administrative mistakes. This uncertainty is making investors reluctant to commit, weakening confidence in the auction process.

The outlet noted that the main issue is the unclear fiscal terms for deepwater oil wells, meaning that investors are hesitant to bid without knowing the tax and royalty details.

If you would like to read more about the key events shaping the African oil and gas sector, then please click here for NewsBase's AfrOil Monitor.