An oil and gas lawyer, Tolu Aderemi, has emphasised the importance of competence, capacity, and patriotism in guiding Nigeria’s 2024 oil and gas bid round, which opened on April 29, 2024.
Aderemi, who is a Visiting Professor at Afe Babalola University and Partner at Perchstone & Graeys, LP highlighted the significance of meeting Nigeria’s OPEC quota of 1.38 million barrels per day.
Statistics from the fourth quarter of 2023 show Nigeria’s struggle to meet its OPEC quota, with production levels falling below the target. The OPEC Monthly Oil Market Report (MOMR) for March 2024 revealed a decline in Nigeria’s output from 1.427 million barrels per day in January to 1.322 million barrels per day in February, attributed to challenges such as crude oil theft, insecurity, asset vandalism, and sabotage.
Despite these obstacles, Adeyemi, who is also the chairman, International Law Association (ILA) Arbitration Committee, expressed cautious optimism about the success of the 2024 bid round, citing the government’s implementation of a robust Regulatory Action Plan (RAP) and a transparent bidding timetable.
He believes that the regulator has set out a robust, realistic and transparent bidding timetable and a credible data partner and that where it (the regulator) is faithful to its processes, the exercise will not only be successful but will deliver increased foreign exchange revenue to Nigeria. He said it would also improve job creation and create a robust and vibrant market with new technologies and infrastructural development.
According to him, it is also bound to birth greater opportunities for indigenous players. As the bid round progresses, Aderemi stressed the importance of bidders’ commitment to Nigeria’s net-zero emission target.
He also raised concerns about market exits following the passage of the Petroleum Industry Act in 2021, urging the government to attract competent investors, while ensuring transparency and sustainability in the sector.
Aderemi warned against potential pitfalls in the bid round, including forced mergers of bidders, allegations of favouritism, unrealistic signature bonuses, and inflated asset values, which could fail if not addressed.
He praised the government’s initiative and doggedness to consistently stimulate the oil & gas market with a robust and friendly legal and regulatory framework. He urged the world to look at the new Nigeria and its market landscape under President Bola Ahmed Tinubu’s administration.
