BREAKING: NUPRC Commences Bid Round For 24 Oil Blocks

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially commenced the commercial bid round for 24 oil blocks across the country.

This licensing exercise, which was initially launched in May, marks a significant milestone as it is the first bid round to be conducted under the Petroleum Industry Act (PIA) 2021.

Speaking at the event in Lagos, the NUPRC Chief Executive, Engineer Gbenga Komolafe, highlighted the strategic importance of the process.

He emphasized that successful bidders would be required to meet specific obligations, including the immediate commencement of exploration activities on the awarded oil blocks.

The licensing round aims to expand Nigeria’s oil and gas reserves, enhance production capacity, and maximize the value of the country’s petroleum resources.

“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 announced.

The NUPRC boss explained that the regulator’s efforts to regain investor confidence have been successful, thanks to the alignment of its operations with the mandates of the Petroleum Industry Act.

“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 emphasised.

Komolafe revealed that the commission has begun reclaiming idle assets in accordance with the ‘drill or drop’ clause of the Petroleum Industry Act.

“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,” he stated.

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