Again, Komolafe Promises to Conduct Fair, Transparent Oil Bid Round
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has again, pledged to ensure a fair and transparent process in the ongoing bid round for 19 oil blocks.
Speaking yesterday at the Miami International Roadshow for the 2024 licensing round hosted by the commission, in collaboration with the Petroleum Technology Association of Nigeria (PETAN), in Florida, Komolafe described the exercise as an unprecedented opportunity to unlock Nigeria's vast hydrocarbon potential and attract investment.
He stressed that the round introduces 12 meticulously selected blocks across diverse geological spectra — from the fertile onshore basins to the promising continental shelves and the untapped depths of Nigeria’s deep offshore territories.
Each block , he said, has been chosen for its potential to bolster the country’s national reserves and stimulate economic vitality.
“Permit me to express that the NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors.
“Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence,” Komolafe stated.
According to him, aside the 12 blocks, seven deep offshore blocks from the 2022 mini-bid round exercise which cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m, shall also be concluded along with the ongoing round.
To ensure the seamlessness of the licensing round exercise, Komolafe stated that the NUPRC, in collaboration with the National Data Repository and multi-client partners, guarantees access to comprehensive and high-quality geological data, facilitating informed decision-making and strategic investments.
Komolafe expressed the hope that the licencing round is expected to be a huge success for Nigeria and is a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and end to end development across the value chain.
He stated that it will also strengthen energy security and economy, providing occasion to gainfully engage the pool of competent companies in the oil & gas sector with multiplier effect in employment opportunities, enabling transfer of technology, valorising petroleum assets in the Nigerian territory and attracting investments.
In addition, the licensing round, he said, presents Nigeria with the opportunity to reinforce its commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).
“On the global scale, the licensing round will no doubt be beneficial to all stakeholders and will in the long run contribute to long-term global energy sufficiency.
“Interestingly, the licensing round process was formulated in cognisance of global energy sustainability goals. The implementation process will, in addition to technical and commercial considerations, pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall environmental, social and governance (ESG) considerations.
“The oil and gas industry in Nigeria has embraced the reality of energy transition and is taking strategic position to leverage on the opportunities presented by the unfolding era.
“However, it is worthy to recognise that recent events around the globe indicate that fossil fuels will continue to be a core part of the global energy mix well into the future, even beyond the set 2050 targets for achieving net-zero carbon emission,” Komolafe explained.
In addition, recognising that the era of frontloaded huge signature bonuses is over, he stated that Nigeria under President Bola Tinubu, as Minster of Petroleum Resources has become a lot more proactive and pragmatic in ensuring that entry fees 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 caseby-case basis for the determination of appropriate entry fees.
“In the case of the 2024 licensing round, the commission will implement suitable models that support investments and guarantee value for stakeholders in accordance with the government aspirations,” the NUPRC chief executive noted.
He extended invitation to Nigeria’s global partners to join in the venture as the guidelines for participation are structured to ensure fairness and strategic partnership, fostering not just economic returns but also technological exchange and capacity building.
“This 2024 block licensing round is not merely a transactional opportunity; it is a testament to Nigeria's commitment to advancing a resilient and sustainable Industry.
“As we stand at the threshold of history in our energy sector, let us collaborate to harness the opportunities that promise not only to meet the immediate needs of our growing economies but also to secure a sustainable future for the next generations for shared prosperity,” he said.
Also speaking, Senator Ekong Williams, Chairman, Senate Committee on Upstream Petroleum Resources, said that Nigeria’s upstream petroleum holds immense promise for investors seeking to capitalise on abundant oil and gas resources, a conducive investment climate, and a government committed to fostering growth and prosperity.
The Nigeria 2024 licensing round, he said, presents a unique opportunity to access strategic acreages, unlock new reserves, and partner with industry leaders in driving Nigeria's and global energy future.
Aside the hydrocarbon resources, he said that Nigeria benefits from a well-developed infrastructure network, including pipelines, terminals, and export facilities, that provides access to regional and global markets.