Nigeria new oil licenses could attract US$1.2bn

LONDON - Opec member Nigeria's licensing round for 61 oil and gas exploration blocks could attract bids worth about US$1.2 billion, presidential adviser on petroleum Edmund Daukoru said.

Twelve offshore blocks could attract bids of about US$80 million each for a total of US$960 million, Daukoru told Reuters. Some bids may exceed US$80 million while others may fall short, he added.

The shallow and onshore blocks on offer would likely attract bids totalling about US$240 million, he said.

Nigeria began marketing the blocks to international investors in March, and the process will culminate in a bidding conference in July.

Nigeria currently produces about 2.3 million barrels per day of oil, but a series of giant offshore discoveries is expected to take ouput towards 4 million bpd within five years. Any blocks awarded in this round would probably start producing after that.

- REUTERS