The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has received presidential approval to remove all entry barriers to the licensing round including reducing the entry fee to the barest minimum.
The NUPRC boss said this on Tuesday at the Miami International Roadshow for the 2024 licensing round hosted by the NUPRC in collaboration with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.
Twelve new blocks namely PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271 including 7 old blocks in the 2022 mini-bid are on offer by the NUPRC.
The 2024 block licensing round is scheduled to last for approximately nine months.
Nigeria has 37.5 billion barrels of crude oil and condensate reserves and 209.26 trillion cubic feet of natural gas reserves representing above 30 per cent and 33 per cent respectively of the entire oil and gas reserves in Africa.
Komolafe said the 2024 licensing round is different due to the decision by the government to eliminate entry barriers.
He said, “Nigeria under President Bola Ahmed Tinubu, GCFR as the Honorable Minster of Petroleum Resources has become a lot more proactive and pragmatic in ensuring that entry do not constitute a barrier to entry for investment in exploration blocks offered.
“As a responsible regulator, the Commission will continue to review the prevailing global investment climate to ensure that the entry fees associated with all licensing rounds are competitive in the context of global realities.
“Broadly speaking, competitive entry fees that are responsive to prevailing realities will be adopted in the 2024 Block licensing rounds. Also, considerations for the commerciality of projects will be made on a case-by case basis for the determination of appropriate entry fees.”
The NUPRC boss said that in the case of the 2024 licensing round, the commission would implement suitable models that support investments and guarantee value for stakeholders in accordance with the government’s aspirations.
He assured that the blocks on offer have extensive 2D and 3D seismic data coverage, including multi-beam and analog data.
Komolafe said, “Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders.
“The availability of advanced seismic datasets and analytical tools via our dedicated portals exemplifies our commitment to excellence and technological advancement.”
The NUPRC boss also addressed securities concerns saying that the Petroleum Industry Act has provided a fund for the host communities which will help eliminate vandalism and theft.
Komolafe said, “The PIA as the overriding legislation has a provision for inclusiveness which is a recipe for sustainable security in the country. So, there is a provision in the PIA that provides the Host Community Development Fund.
“It is a provision that guarantees inclusivity and a peaceful host community environment and as we spark, the NUPRC is implementing that provision which we call the host community provision in the PIA.”
He said the guidelines for participation are structured to ensure fairness and strategic partnership, fostering not just economic returns but also technological exchange and capacity building.