Komolafe: 2025 oil licensing bid round will target undeveloped fields

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it will launch another oil block licensing bid round in 2025, focusing on undeveloped fields.

Gbenga Komolafe, chief executive officer (CEO) of the NUPRC, spoke on Wednesday during the 2024 licensing round commercial bid conference in Lagos.

“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,” he said.

“Fortunately, the Petroleum Industry Act (PIA) 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 from the present year’s round, Komolafe said the 2025 exercise would focus on “discovered and undeveloped fields, fallow assets”.

The NUPRC boss said the exercise would also prioritise natural gas development to support Nigeria’s commitment to the United Nations sustainable development goals (SDGs).

He further said the commission has made a commitment to regaining investors’ confidence in the industry, adding that the feat has been achieved by ensuring its activities align with the provisions of the PIA.

“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,” he said.

Komolafe said the law states 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,” he said.

“And that’s why I said that at the conclusion of this (2024) exercise, we will commence another one in 2025.”

‘NUPRC HAS COMMENCED RECOVERY OF IDLE ASSETS’ 

The NUPRC boss said the commission has started recovering idle assets based on the ‘drill or drop’ provision of the PIA.

“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,” Komolafe said.

“We intend to revitalise these idle assets, as many of them remain unused, which is not the intent of the PIA.

“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.”

Komolafe said the commission would reintegrate them into the pool, noting that they would be available for bidding by interested parties in the next licensing round.

He added that bidders in the 2024 round would soon be informed about the latest developments.