By Milcah Tanimu

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken a significant step in accordance with the provisions of the Petroleum Industry Act (PIA) 2021 by granting a Petroleum Exploration License (PEL) to TGS-PetroData Offshore Services Limited (TGS-PD).

This marks the first PEL issued under the PIA 2021, following the license agreement established between the Commission and TGS-PD for a Geophysical Survey Project aimed at acquiring approximately 56,000 square kilometers of 3D seismic and gravity data.

NUPRC’s Chief Executive, Gbenga Komolafe, announced this milestone, emphasizing its role in facilitating investment in the oil and gas sector. He stressed the importance of data in the development and revenue generation from reserves, highlighting that the data obtained under the PEL is not proprietary but speculative, and it is acquired in partnership with the NUPRC.

The PEL authorizes TGS-PetroData Offshore to conduct non-exclusive petroleum exploration operations on a multi-client basis within the licensed area and allows the use of the acquired 3D seismic and gravity data by exploration companies.

Additionally, the Nigerian Content Development and Monitoring Board has approved the deployment of the specialized Geophysical Survey Vessel for the acquisition of 3D seismic and gravity data.

The acquisition of seismic and gravity data began on July 17 and the processed data is expected to be available by mid-2024. This includes the acquisition of approximately 11,900 square kilometers of new 3D seismic and gravity data in water depths ranging from 30 meters to 4,000 meters offshore the Niger Delta.

Simultaneously acquiring seismic and gravity data is anticipated to enhance the understanding of identified structures and reservoirs. Importantly, NUPRC holds exclusive rights and ownership over the acquired data, making it the property of the Nigerian government.

According to section 71(7) of the PIA, both 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. This newly acquired 3D seismic and gravity data will provide crucial insights into the regional petroleum system of Nigeria’s ultra-deep waters, potentially unlocking hydrocarbon prospects in the country’s frontier basins.

Furthermore, this data will play a pivotal role in future deep-water licensing rounds, attracting foreign direct investments into oil and gas exploration in Nigeria.