FG Clarifies Bidding Process for Bitumen Concessions and Provides Guidance to Investors

In an effort to stop the import of bitumen and diversify the economy, the federal government, through the Ministry of Mines and Steel Development, in conjunction with the Nigeria Geological Prospecting Agency (NGSA), has stepped up its efforts to attract investors to the bitumen sector.

This was made public at the PricewaterCooper and Federal Ministry of Mines and Steel Development bitumen concession event held virtually.

In addition, the FG through the ministry and the agency has issued guidelines for investors wishing to enter the sector.

According to the NGSA, it had launched a study to collect data to learn more about how to make bitumen blocks more attractive and advance their development.

Abdulrazaq A. Garba, Managing Director/CEO, NGSA, said extensive exploration activities have been conducted throughout the Dahomey Basin, with a recalculated study area of ​​225 x 19 km2 extending from the west of Ijebu, Ogun State, to the Siluko region on the fringes of the western Niger Delta, all within the Cretaceous Abeokuta Group.

He said these crossed four states, Lagos, Ogun, Ondo and Edo states, with around 16 to 42 billion barrels discovered in Ondo.

The federal government has designated the mining industry as one of the critical sectors for rapid growth and development, according to Olamilekan Adegbite, Minister of Mines and Steel Development.

Also read: Across Nigeria, the mining sector offers opportunities for investors

He said: “The FG, through the MMSD, intends to competitively offer delineated blocks of bitumen in Nigeria to potential investors for the exploration, development and production of bitumen resources. “, did he declare.

On the other hand, Cyril Azobu, Team Leader, Mining Practice, PwC, said that on November 11, 2021, the MMSD issued a letter of award to the firm, appointing it to serve as transaction adviser and program manager for selection. offers for the development of Nigeria’s defined bitumen blocks.

He said: “The scope of PwC’s mandate will ensure that, given the uniqueness and particularities of bitumen exploration, development and extraction, only suitably qualified local and international investors with prior experience.

“Technological expertise and financial capacity are selected to carry out the development of bitumen to a significant level of extraction, through a transparent and competitive procurement process, as provided for in the Nigerian Minerals and Minerals Act 2007. mines and in accordance with global industry best practices.

“The whole process would be completed by November 2022,” the team leader said.

Meanwhile, Nigeria, estimated at 42 billion barrels, ranks 6th in bitumen reserves in the world.

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