… Tinubu’s Executive Orders Has Unlocked Investment- Komolafe
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially launched the 2024 Licensing Round in a bid to attract investment and enhance energy security in the country.
The move marks the first licensing round since the implementation of the Petroleum Industry Act (PIA) in August 2021, the NUPRC said.
The Commission Chief Executive, Engr. Gbenga Komolafe announced the development on Wednesday at the Commercial Bid Conference held in Lagos.
Komolafe said, “This Licensing Round is not merely a commercial exercise; it is a bold declaration that Nigeria is ready for business.
“Following this conference, successful bidders will receive their blocks within months; payments of Signature Bonuses will be made in full before the granting of licenses or leases; awarded blocks will undergo aggressive exploration and development in line with minimum work programme obligations; capacity building and job creation for Nigerians will be proritised, while delivering optimal value to both our local and foreign investors and government will continue to integrate sustainability measures into all exploration and production activities, safeguarding host communities and protecting the environment.”
According to the NUPRC, the conference aims to transparently unveil the winners of the licensing round while discussing strategies to harness Nigeria’s vast hydrocarbon resources.
NewsNGR reported in May that the NUPRC opened the 2024 Licensing Round at the Offshore Technology Conference in Houston, Texas, USA.
The licensing round offers twenty-four (24) blocks spanning onshore, shallow water, and deep offshore terrains and seven deep offshore blocks from the 2022 Mini Bid Round, bringing the total to thirty-one (31) blocks.
The NUPRC said it hopes to harness the country’s growing oil and gas reserves through aggressive exploration and development and boost production while expanding opportunities for gas utilization across the value chain.
It said the licensing round would enhance energy security and economic growth and attract investments.
Komolafe emphasized, “Commitment to transparency and accountability in managing Nigeria’s oil and gas sector, aligning with global best practices and principles of the Extractive Industry Transparency Initiative (EITI).
“The commercial bids will be opened through an electronic bidding process supervised by representatives from NEITI, the Federal Ministry of Finance, and the Federal Ministry of Petroleum Resources. “
The CCE explained some of the features of the licensing round to include, “Investor-friendly terms with reduced signature bonuses and the recent Presidential Executive Orders on non-associated gas (NAG) development, optimized local content and the reduction of contracting costs and timelines, we have fostered an enabling environment that strengthens Nigeria’s competitiveness in the global energy market.
“Streamlined Allocation: This round prioritises single applicants or well-established consortia to ensure greater efficiency and accountability, as against the 2020 MFBR 2020 where the allocation of blocks to multiple companies presented certain challenges.
“Collaboration for Local Content Development: This bid round has also been designed to foster collaboration between reputable local companies and their international counterparts, promoting local content development, creating employment opportunities and facilitating technology transfer.
“Environmental and social considerations remain a top priority, and we will ensure that all exploration and production activities adhere to global best practices while promoting harmonious and peaceful coexistence between oil and gas companies and their host communities.”
Komolafe further expressed optimism about “early final investment decisions (FIDs), increased exploration activities, and prompt first oil and gas production across all terrains.”