The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, has announced that there will be another oil licensing bid round in 2025.
This declaration was made during the 2024 Commercial Bid Conference held at Eko Hotel & Suites in Lagos, where Gbenga Komolafe, the commission chief executive, highlighted the nation’s commitment to transparency, sustainability, and economic growth in its upstream petroleum sector.
“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,” he announced.
Explaining further, Komolafe said the regulator’s commitment has been to restore investors’ confidence in the industry, adding that this has been achieved by ensuring its activities align with the provisions 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.
The NUPRC boss added that the commission has started 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 stated.
