Oil Firms In Fresh Strategy For 2006 Bid Round
By Hector Igbikiowubo, Vanguard Newspapers
 25th OCT 2006

DOHA,Qatar— Multinational oil firms, preparing to participate in the 2006 licensing round for oil and gas blocks, have keyed into the Federal Government’s downstream strategic investment approach for acquisition of acreage.

Oil prices have dropped to $57 per barrel despite the decision of the Organisation of Petroleum Exporting Countries (OPEC) to cut the group’s total output by 1.2 million barrels per day.

Dr. Edmund Daukoru, Minister of State for Petroleum Resources and President of OPEC, told a consultative session of the producer group in Doha, the Qatari capital city, weekend, that most of the oil firms participating in the next licensing round were exploring government’s upstream/downstream strategic investment initiative.

The government’s upstream/downstream strategic investment initiative gives preference to investors who commit to an investment portfolio not less than $2 billion in the downstream strategic projects including power, refinery and pipeline network and other projects as may have been agreed upon with the authorities.
Dr. Daukoru said about 55 oil blocks in various sedimentary basins would be put on offer by the government in the next round and that the bidding conference was now scheduled to take place in the third week of next month.

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