NUPRC begins bidding round for 12 oil blocks

The Nigerian Upstream Petroleum Regulatory Commission has announced the commencement of the bidding process for 12 oil blocks recently listed for sale.

It also signals the start of the 2024 Nigeria Petroleum Licensing Round and the resumption of the 2022/2023 mini-bid round.

This was contained in a press release signed by the commission’s chief executive, Gbenga Komolafe on Monday in Abuja.

Last month, the commission issued the first announcement on the bidding process.

It also waived the signature bonus requirement in the bidding process to woo investors for the auctioned oil blocks.

He said, “On behalf of the Federal Government of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission is pleased to announce the commencement of the 2024 Petroleum Licensing Round.”

On the number of blocks for the offer, Komolafe noted, “We have identified 12 blocks that cut across deep offshore, shallow water and onshore terrains to be made available to interested investors.”

According to him, this licensing round marks a significant milestone in our commitment to fostering sustainable growth and innovation within the energy sector, while providing economic opportunities for investment to spur new exploration, and development activities within our Petroleum landscape.

He explained that the 2024 Licensing Round represents an opportunity for both domestic and international stakeholders to engage in the exploration and development of Nigeria’s hydrocarbon resources.

He emphasised that at the core of this approach is the availability of top-notch geological and geophysical data.

Komolafe said the National Data Repository of NUPRC, in collaboration with multi-client partners, is committed to providing access to extensive and robust datasets to prospective bidders to enhance their decision-making.

Commenting on the offer of 12 blocks, he said in line with the objectives of the licensing round, the offer comprises a diverse range of exploration prospects and discoveries with varying technical and operational preferences.

Komolafe added, “Our goal for this licensing round is to harness innovative exploration techniques and foster partnerships that will enhance our production capabilities and ensure environmental sustainability.

“We anticipate that this initiative will not only expand our operations but also significantly contribute to the global energy supply, aligning with international energy security goals.”

He underscored a comprehensive approach to resource management, highlighting that the 2024 Licensing Round gives utmost importance to environmental, social, and governance factors.

The NUPRC boss further noted that by incorporating ESG criteria into the licensing process, stakeholders can contribute to sustainable development while harnessing the nation’s natural resources responsibly.

According to him, the success of the 2024 Licensing Round hinges on collaboration among all stakeholders, including government agencies, industry players, and local communities.

He said by fostering a conducive investment environment and promoting best practices in resource management for shared prosperity.

Komolafe explained that the 2024 licensing Round is the second in a series of bid rounds and will be managed by NUPRC under the provisions of the Petroleum Industry Act 2021.

He said the PIA provides enhanced legal and regulatory rules that encourage and promote investment for the mutual benefit of the people of the Federal Republic of Nigeria, international and national investors, and the host communities while ensuring environmental sustainability.