FG Woos Investors to Developing 42b Barrels Bitumen Reserves

With a global market estimated at $110 billion, the Federal Government has called on investors to explore the development of the nation’s 42 billion barrels of bitumen reserves.

Speaking at a virtual clarification session, organised by the Ministry of Mines and Steel Development in collaboration with PwC Nigeria, the Director-General of the Nigerian Geological Survey Agency, Dr. Abdulrasaq Garbar, who provided geoscientific data and other information to guide potential investors, said the country holds the sixth largest reserves of bitumen in the world.

He said the mineral remained unexploited for years, thereby creating massive opportunity for domestic production of Bitumen in lieu of the country’s Bitumen importation.

The Director-General of Mining Cadastre and the Chairman of Bitumen Committee, Engr. Obadiah Simon, who stated that Nigeria is blessed with a lot of mineral resources, which have remained untapped, said although there had been tremendous successes, there are many more opportunities for improvement, particularly regarding the Bitumen resource.

Leader, Mining Practice at PwC Nigeria, Cyril Azobu, who explained the firm’s mandate on the Bitumen programme, said the scope of the PwC mandate was to ensure uniqueness and peculiarity of the exploration, development and extraction.

According to him, only suitably qualified local and international investors will be chosen to execute bitumen development to a meaningful extraction level.

This, he mentioned, will be through a transparent and competitive procurement process as enshrined in the Nigerian Mineral and Mining Act 2007 and in line with global best industry practices.

He disclosed that in the seven-month bidding process, which will span May to November 2022, local and international investors are expected to prepare a request for qualification application and send it to Bitumen.ngsa.gov.ng.

The application, he added, consists of six credentials which include experience in Bitumen testing, Bitumen refining capabilities, as well as Bitumen exploration and extraction.

“In addition, investors are also needed to comply with applicable environmental, social and governance sustainability guidelines; have balance sheet assets exceeding $25 million and technical and financial capability to execute feasibility studies,” he said.

It will be recalled that the Ministry of Mines and Steel Development had in November 2021, appointed PwC as Transaction Adviser/Programme Manager to oversee the selection of bidders for the development of Nigeria’s defined Bitumen blocks through a competitive tender procedure.