Nigeria Nigeria's Milestone: First Exploration Licence Under New Petroleum Act

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TGS-PetroData Offshore Services Limited (TGS-PD) has been granted a Petroleum Exploration Licence (PEL) by the Nigerian Upstream Petroleum Commission (NUPRC) under the new Petroleum Industry Act (PIA) of 2021 - this is the first license to be granted under the PIA. It allows TGS-PD to conduct non-exclusive Petroleum Exploration Operations on a multi-client basis within the licensed area. The Geophysical Survey Project to be undertaken by TGS-PD aims to acquire around 56,000 square kilometres of 3D seismic and gravity data.

Gbenga Komolafe, the Chief Executive of the NUPRC, stated that this move is a crucial step in the execution of the PIA, which aims to attract investments into Nigeria's oil and gas industry. The NUPRC emphasized the importance of data, stating that with it, reserves can be auctioned for development and revenue generation.

Exploration companies can utilize the acquired 3D seismic and gravity data to understand better Nigeria's regional petroleum system, particularly in ultra-deep waters, and unlock the hydrocarbon potential of Nigeria's frontier basins. The data acquisition began on July 17, 2023, and the processed data is expected to be available by mid-2024.

This initiative is anticipated to be crucial in future deep water licensing rounds, attracting Foreign Direct Investments into Nigeria's oil and gas sector. This will boost oil and gas reserves and production and foster Nigerian content development and job opportunities for local professionals.