The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has staged an International Roadshow in Miami, U.S. State of Florida to signal the commencement of 2024 Licensing Round for 19 0il blocks in Nigeria.
Recall that the 2024 licensing round was officially unveiled at the Offshore Technology Conference (OTC) in Houston, U.S. last week.
Organised in collaboration with the Petroleum Technology Association of Nigeria (PETAN) Ritz-Carlton Resort Miami Beach, on Tuesday, the International Roadshow assembled oil and gas industry professionals, business leaders and investors in the world, to explore the vast opportunities in Nigeria’s 2024 Licensing Round.
Speaking, the Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe noted that the 2024 licensing round presented an unprecedented opportunity to unlock Nigeria’s vast hydrocarbon potential, attract investment, and propel the country towards greater economic prosperity and shared prosperity.
Engr. Komolafe announced that in keeping with the provisions of the Petroleum Industry Act (PIA) and regulations made under the Act, the Commission has issued a licensing round guideline and published a licensing round plan for the twelve 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).
He affirmed that in addition to these blocks, the 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 this Licensing round.
The NUPRC boss explained that “as a nation, Nigeria is endowed with 37.5 billion barrels of Crude Oil and Condensate Reserves and 209.26 trillion Cubic Feet of Natural Gas Reserves representing above 30% and 33% respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources.
“It is towards the exploitation and optimization of this abundant Hydrocarbon resources that Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC as the Industry Regulator to conduct bidding rounds for the award of PPLs and PMLs pursuant to the Act and applicable Regulations.
“It is on this premise that the Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is pleased to announce the commencement of the 2024 Licensing Round at this Global event for participation by International Investors with financial and technical capacity”, he said.
He said, to ensure the seamlessness of the Licensing Round exercise, the Commission, in collaboration with its National Data Repository and multi-client partners, guarantees access to comprehensive and high-quality geological data, facilitating informed decision-making and strategic investments.
Speaking on the expected gains to be derived from the exercise, the CCE said, the Licencing Round is expected to grow 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 said, it would also strengthen energy security and economy, providing occasion to gainfully engage the pool of competent companies in the oil and gas sector with multiplier effect in employment opportunities, enabling transfer of technology, valorising petroleum assets in the Nigerian Territory and attracting investments.
On the global scale, Engr. Komolafe said, the Licensing Round will no doubt be beneficial to all stakeholders and will in the long run contribute to long-term global energy sufficiency.
He pledged the Commission’s commitment to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Adding, “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”.
He, therefore, called on foreign investors and partners to participate in the exercise.
“As we launch the Nigerian 2024 Block Licensing Round today at the OTC, 2024 event, we warmly extend invitation to our global partners to join us in this venture.
“The guidelines for participation are structured to ensure fairness and strategic partnership, fostering not just economic returns but also technological exchange and capacity building”, Engr. Komolafe announced.
He revealed that the 2024 Block Licensing Round is scheduled to last for approximately nine (9) months and all interested parties are invited to visit the dedicated NUPRC portal for details on how to participate.
Also speaking, the Chairman, Senate Committee on Upstream Petroleum Resources, Senator Ekong Williams said, Nigeria’s upstream oil and gas industry boasts a robust ecosystem of indigenous companies and experts with deep-rooted experience, technical know-how, and a proven track record of delivering cost-effective services across the upstream value chain.
He said, with a well-developed local capacity, investors in Nigeria’s oil and gas sector could benefit from a wide range of services provided by local companies, including drilling, seismic surveys, well construction, production optimization, facility maintenance, and logistics support, and are assured of access to timely, cost-effective, and high-quality services that meet international standards and best practices.
He added that the Nigerian government is committed to creating a conducive regulatory framework that promotes investment, transparency, and accountability in the upstream petroleum sector to enable optimal exploitation for shared prosperity.
Earlier, in his Opening Remarks,the Chairman, House Committee on Upstream Petroleum Resources, Ado Doguwa noted that investing in Nigeria’s upstream sector is not only a sound business decision but also a strategic imperative in addressing the growing global energy demand.
He said, with a rapidly expanding population, urbanization, and industrialization, Nigeria’s energy needs, and indeed the global energy demand, are poised to increase exponentially in the coming years.
He added that by investing in Nigeria’s energy sector, investors could play a vital role in meeting this growing demand and fostering inclusive growth and socio-economic empowerment through job creation, skills development, and local content participation.
