Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced that a new oil licensing bid round will take place in 2025. This statement was made on Wednesday during the 2024 Licensing Round Commercial Bid Conference in Lagos, as the commission nears the conclusion of its 2024 licensing round.
Komolafe revealed that the NUPRC has decided to make licensing rounds an annual event, a strategic move aimed at boosting oil production. He further emphasized that the 2025 round will focus on previously 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.
“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 prioritise natural gas development to support Nigeria’s commitment to the UN Sustainable Development Goals,” Komolafe stated.
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Further elaborating on the NUPRC’s mission, Komolafe emphasized the commission’s dedication to rebuilding investors’ confidence in the industry. This, he noted, has been achieved by aligning the commission’s activities with the Petroleum Industry Act’s provisions.
“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 optimise our hydrocarbon resources, as I said, 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 emphasized.
In addition, Komolafe outlined the NUPRC’s efforts in recovering idle assets, leveraging the ‘drill or drop’ provision of the Petroleum Industry Act. He explained that the commission is engaging with the industry to ensure that unexplored resources are returned to production, which aligns with the Act’s purpose.
“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 revitalise these idle assets, as many of them remain unused, which is not the intent of the Petroleum Industry Act.
“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,” Komolafe stated.
With the 2024 licensing round soon coming to a close, bidders will soon learn their fate.
