The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has achieved a significant milestone in the implementation of the Petroleum Industry Act (PIA) 2021. The NUPRC, in compliance with the provisions of Section 71 (1) – (10) of the PIA, has granted a Petroleum Exploration Licence (PEL) to TGS-PetroData Offshore Services Limited (TGS-PD). This marks the first PEL issued under the new legislation.
The PEL is the result of a license agreement between the Commission and TGS-PD, executed for a Geophysical Survey Project that involves the acquisition of approximately 56,000 square kilometres of 3D seismic and gravity data. Gbenga Komolafe, the Chief Executive of NUPRC, expressed his satisfaction with the development, emphasizing its significance in attracting investment to the oil and gas sector.
Komolafe highlighted the importance of data in unlocking the potential of Nigeria’s petroleum reserves. He explained that the data acquired under the PEL is not proprietary but speculative/multi-client survey data acquired in partnership with the NUPRC. The license authorizes TGS-PetroData Offshore to conduct non-exclusive Petroleum Exploration Operations within the licensed area. Additionally, exploration companies are permitted to use the acquired 3D seismic and gravity data.
To facilitate the acquisition of the 3D seismic and gravity data, the Nigerian Content Development and Monitoring Board granted TGS-PD permission to deploy their specialized Geophysical Survey Vessel. The acquisition process began on July 17, and the processed data is expected to be available for use by mid-2024. Phase one of the Geophysical Survey Project involves the acquisition of approximately 11,900 square kilometres of new 3D seismic and gravity data in water depths ranging from 30 meters to 4,000 meters in the offshore Niger Delta.
Komolafe emphasized that the simultaneous acquisition of seismic and gravity data would enhance the correlation of identified structures and reservoirs. This groundbreaking venture aims to image deeper reservoirs that have previously remained unexplored in the offshore Niger Delta.
The acquired data will be processed using the latest proprietary technology developed by TGS. Ultimately, the data will be licensed to exploration companies, thereby creating opportunities for new findings and discoveries in Nigeria’s waters. This new 3D seismic and gravity data acquisition project will provide invaluable insights into the regional petroleum system of Nigeria’s ultra-deep waters and unlock the hydrocarbon prospectivity of the country’s frontier basins. It is anticipated that the acquired data will attract foreign direct investments (FDIs) and stimulate oil and gas exploration in Nigeria’s deep waters.
Under the stipulations of Section 71(7) of the PIA, the Commission and the Federal Government of Nigeria will benefit from the revenue generated through data use licenses granted to interested exploration companies by TGS-PD. It is important to note that the Nigerian Government holds the sole right and title over the acquired raw and interpreted data obtained through the petroleum exploration license.
The granting of the first petroleum exploration license to a private company marks a significant step forward in Nigeria’s oil and gas sector. This landmark achievement sets the stage for increased investment and exploration activities, positioning Nigeria as a promising destination for oil and gas exploration in Africa.
