The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, revealed that a new oil licensing bid round will take place in 2025.
He made the announcement during the 2024 Licensing Round Commercial Bid Conference held in Lagos on Wednesday, as the commission nears the conclusion of the 2024 licensing round.
Komolafe stated that the decision to make licensing rounds an annual event is aimed at boosting oil production in the country.
The 2025 bid round, he noted, will prioritize unexplored assets.
“Ladies and gentlemen, while we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead.
Declining production levels and increased global competition demand strategic action.
Fortunately, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investment, and position Nigeria as a leader,” Komolafe said.
He added, “To this end, I am pleased to announce that the NUPRC will launch another licensing round in 2025.
Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets, and prioritize natural gas development to support Nigeria’s commitment to the UN Sustainable Development Goals.”
Komolafe further emphasized that the NUPRC’s commitment is to restore investor confidence in the industry, ensuring that its activities align with the provisions of the Petroleum Industry Act (PIA).
“What we are doing here today is not a matter of discretion by the commission but is in line with the statutory provisions of the Petroleum Industry Act.
The law stipulates that the commission should conduct licensing rounds.
The law did not make it annual, but to ensure that we grow, preserve, and optimize our hydrocarbon resources, we are committed to annual licensing rounds.
And that’s why I said that at the conclusion of this (2024) exercise, we will commence another one in 2025,” he explained.
The NUPRC boss also highlighted the commission’s efforts in recovering idle assets through the ‘drill or drop’ provision of the PIA.
“There is a provision in the Petroleum Industry Act that speaks to ‘drill or drop’.
We have been engaging with the industry to ensure that unexplored areas and resources are returned to production.
We intend to revitalize these idle assets, as many of them remain unused, which is not the intent of the Petroleum Industry Act,” he stated.
Komolafe added, “So, as a commission and as a regulator, we have started activating the ‘drill or drop’ provisions of the Petroleum Industry Act, which is intended to ensure that our assets do not remain idle.
We are reintegrating them into the pool, and they will be available for bidding by interested parties in the next licensing round.”
As the 2024 licensing round concludes, bidders will soon learn their outcomes.
