. ‘5 Key Things To Know About 2025 bid round’ Komolafe gives information on fresh licensing
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun the recovery of Idle Oil Blocks in Nigeria as it announced a fresh oil licensing round for 2025.
Platforms Africa reports that Gbenga Komolafe, Commission Chief Executive of the NUPRC, made the announcement on Wednesday at the 2024 Licensing Round Commercial Bid Conference In Lagos.
According to him, the 2025 licensing round would focus on underexplored assets, fallow fields, and natural gas development as part of Nigeria’s commitment to the UN Sustainable Development Goals.
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Komolafe emphasized that the NUPRC aims to make the licensing rounds an annual event to address challenges such as declining production and rising global competition.
Platforms Africa highlighted key information given by the commission about the 2025 licensing rounds to include;
1. 2025 licensing round will focus on underexplored assets, fallow fields, and natural gas development as part of Nigeria’s commitment to the UN Sustainable Development Goals.
2. To address declining production levels and increased global competition demand strategic action.
3. Not discretionary by the commission but it’s in line with the statutory provisions of the Petroleum Industry Act. The law stipulates that the commission should conduct licensing rounds.
5. The blocks for 2025 bid bround will he harvested from idle assets recovery programme known as ‘drill or drop,’ which the commission has begun based on the provision of the Petroleum Industry Act.
Komolafe gives detailed explanations
Addressing the conference in Lagos, Komolafe said, “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 further explained that the regulator’s focus has been on restoring investor confidence in the industry, adding that this has been achieved by ensuring that its activities are fully aligned with the provisions of the Petroleum Industry Act.
He said, “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.”
The CCE also stated that the commission has begun recovering idle assets based on the ‘drill or drop’ provision 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 added.
Platforms Africa
