The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, has announced plans for a new oil licensing bid round in 2025.
The announcement was made on Wednesday during the 2024 Licensing Round Commercial Bid Conference held in Lagos.
Komolafe revealed that the upcoming licensing round would focus on untapped and underdeveloped fields, as the commission aims to transform the nation’s oil and gas industry and enhance production capacity.
“As industry stakeholders, while we celebrate recent achievements, we must also address the pressing challenges of declining production levels and intensified global competition,” Komolafe said.
The NUPRC chief emphasized the significance of the Petroleum Industry Act in enabling strategic reforms to attract investment and position Nigeria as a global leader in the sector.
“To this end, I am delighted to confirm that the NUPRC will conduct another licensing round in 2025. This will target discovered but undeveloped fields, fallow assets, and prioritise natural gas development to align with Nigeria’s commitment to the UN Sustainable Development Goals,” Komolafe added.
He noted that the decision to hold licensing rounds annually aligns with the commission’s drive to optimise the country’s hydrocarbon resources.
“The PIA requires us to conduct licensing rounds, but it doesn’t mandate them to be annual. However, to ensure sustained growth and resource optimisation, we have committed to making these rounds a yearly event. Once the 2024 round concludes, preparations for the 2025 round will begin immediately,” Komolafe explained.
Additionally, the NUPRC has started enforcing the “drill or drop” clause of the PIA to recover idle assets.
“There are provisions in the Petroleum Industry Act that compel companies to either develop or relinquish assets. As a regulator, we are actively reclaiming unexplored and unused resources, reintegrating them into the bidding pool for future rounds,” he stated.
Komolafe assured stakeholders that this proactive approach aims to rebuild investor confidence and ensure compliance with the provisions of the PIA.
“We are not acting on discretion but strictly in line with the law, ensuring that our actions serve the industry and the nation,” he said.
