The Nigerian Upstream Regulatory Commission (NUPRC) has unveiled plans for a new oil licensing round in 2025, aiming to boost investments, increase reserves, and expand the nation’s oil and gas production capacity.
NUPRC Chief Executive, Engr. Gbenga Komolafe, announced the development during the 2024 Licensing Round Commercial Bid Conference in Lagos. He emphasized that the 2025 round would focus on discovered but undeveloped fields, also known as fallow assets, and prioritize natural gas projects to align with Nigeria’s UN Sustainable Development Goals commitments.
“This initiative is a bold declaration that Nigeria is open for business,” Komolafe stated. “It’s an opportunity to unlock our hydrocarbon potential, attract investors, and drive inclusive economic growth.”
2024 Licensing Round Milestones
The ongoing 2024 Licensing Round, launched in May, features 24 selected blocks spanning onshore, shallow water, and deep offshore terrains, alongside seven deep offshore blocks carried over from the 2022 Mini Bid Round, totaling 31 blocks.
“This round offers significant economic, energy security, and technological opportunities,” Komolafe noted, adding that the bidding process is conducted electronically, with transparency ensured by oversight from the Extractive Industry Transparency Initiative and key federal ministries.
Unique features of the round include reduced signature bonuses, optimized local content, and streamlined contracting processes, enhancing Nigeria’s competitiveness in the global energy market. The NUPRC has prioritized single applicants or well-established consortia to ensure efficiency and accountability, while fostering collaboration between local and international companies to boost local content and technology transfer.
Focus on Sustainability and Growth
Komolafe reiterated the Commission’s commitment to decarbonization, environmental protection, and community harmony. “All activities will adhere to global best practices to promote peaceful coexistence between companies and host communities,” he assured.
With the transformative Petroleum Industry Act and recent Presidential Executive Orders, the sector is poised for aggressive exploration, early Final Investment Decisions (FIDs), and accelerated production timelines.
“These efforts will create jobs, strengthen energy security, and solidify Nigeria’s position as a prime global energy investment destination,” Komolafe concluded.
Despite challenges such as declining production and global competition, the NUPRC remains optimistic about addressing these issues through collaboration, innovation, and strategic reforms to maintain Nigeria’s leadership in the energy sector.
Comments