NUPRC: Winners in 2022 mini-bid round will be announced in next four months

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says winners of the mini-bid for the deep offshore licensing round will be announced in the next four months.

Gbenga Komolafe, chief executive officer (CEO), NUPRC, made the disclosure during a pre-bid conference for the 2022/2023 licensing round on Monday in Lagos.

The theme of the conference was: ‘growing upstream investment in Nigeria through licensing round: the bid process and opportunities’.

On December 21, 2022, NUPRC announced the commencement of the 2022 mini-bid round — 15 years after the last bid round. 

Seven offshore blocks covering an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m were put on offer.

Addressing participants at the pre-bid conference, Komolafe said the seven deep offshore blocks on offer are intended to be the first series of bid rounds for further development of Nigeria’s prospective petroleum basins. 

He said the seven blocks are: PPL-300-DO, PPL-301-DO, PPL-302-DO, PPL-303-DO, PPL-304-DO, PPL-305-DO, and PPL-306-DO.

“The bid rounds are within the context of our enhanced legal and regulatory frameworks as enshrined in section 73 of the PIA 2021 act that seeks to encourage new investors and investments into the next phase of oil and gas exploration in Nigeria,” Komolafe said.

He said the pre-bid conference is a clarion call to technically and financially capable local and foreign investors to invest and take advantage of the generous regulatory and fiscal regime in Nigeria’s upstream sector.

“The exercise is scheduled to last for approximately four months, comprising registration and pre-qualification, data prying/purchase, technical bid submission/presentation, technical bid evaluation and commercial bid conference,” he said.

According to Komolafe, the NUPRC had announced the commencement and launched the bid round portal, which was officially opened on January 3, 2023.

“Rest assured that the entire bid process pursuant to the provisions of the PIA 2021 and attendant regulations will be fair, transparent, and competitive in line with best practices,” he said. 

“Furthermore, the mini bid exercise has been designed to attract competent investors from across the world, both local and foreign, that have the capability and competence in operating in deep water environments.” 

However, all awardees must be duly registered in Nigeria under the Companies and Allied Matters Act (CAMA) and may participate either as an individual company, or as a consortium, Komolafe said.

MINI-BID ROUND TO EXPAND OPPORTUNITIES FOR GAS UTILISATION 

The NUPRC boss noted that the exercise will expand opportunities for gas utilisation and development, strengthen energy security and economy, provide the opportunity to gainfully engage the pool of competent companies in the oil and gas sector, enable transfer of technology and valorise petroleum assets in the Nigerian territory, and attract investments.

“In addition, the mini-bid round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI),” he said.

BID ROUND DESIGNED IN LINE WITH GLOBAL SUSTAINABILITY GOALS 

Komolafe also said the licensing round process was formulated in cognisance of global sustainability goals.

He added that the 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,” he said.

“As a regulatory commission, we have taken deliberate steps in this regard, including the recent issuance of guidelines for the management of fugitive methane and greenhouse gases emissions in the upstream oil and gas operations in Nigeria during the COP27 in Egypt in a manner that attracted wide international commendation for Nigeria.

“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 2050 targets for achieving net-zero carbon emissions that have been set by most countries.

 “It will interest you to note that the commission has established a committee to engage and collaborate with world renowned energy consultants, Wood Mackenzie, to ensure that the Nigerian petroleum upstream regulations are in line with international best practices, which will form the basis for regulating the awardees of the seven deep offshore blocks offered in the 2022/2023 mini-bid round exercise.”