NUPRC announces 2025 oil licensing round to boost production, revitalize idle assets

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that it will hold another oil licensing round in 2025, as part of its strategy to address declining production levels and enhance Nigeria’s position in the global energy market.

Gbenga Komolafe, the Chief Executive of NUPRC, made the announcement on Wednesday during the 2024 Licensing Round Commercial Bid Conference in Lagos. This follows the nearing completion of the 2024 licensing round.

Komolafe stated that the commission plans to make licensing rounds an annual event, with the 2025 round specifically targeting unexplored assets. He emphasized the importance of continued strategic actions to boost oil production and attract further investment.

“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. Fortunately, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investment, and position Nigeria as a leader,” Komolafe said.

Read also: Tinubu sets ambitious N1,500/dollar exchange rate target for 2025 budget

He added, “To this end, I am pleased to announce that the NUPRC will launch another licensing round in 2025. Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets, and prioritise natural gas development to support Nigeria’s commitment to the UN Sustainable Development Goals.”

Komolafe also explained that the commission’s efforts align with the provisions of the Petroleum Industry Act, which mandates the conduct of licensing rounds. Although the law does not stipulate that these rounds be held annually, the NUPRC has decided to make them a regular occurrence to optimize Nigeria’s hydrocarbon resources.

“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. The law stipulates 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, we are committed to annual licensing rounds. And that’s why I said that at the conclusion of this (2024) exercise, we will commence another one in 2025,” Komolafe clarified.

The NUPRC has also initiated efforts to revitalize unused oil fields under the ‘drill or drop’ provision of the Petroleum Industry Act. Komolafe noted that this provision mandates the reactivation of idle assets, ensuring they are put back into production or made available for bidding by interested parties.

“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. We intend to revitalise these idle assets, as many of them remain unused, which is not the intent of the Petroleum Industry Act. 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,” he explained.

Bidders in the 2024 licensing round will soon find out the results of their submissions.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now