NUPRC To Conduct New Bid Round For 12 Oil Blocks In 2024

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said it would conduct new Bid Round of 12 blocks this year.

The Commission Chief Executive, Engr. Gbenga Komolafe, disclosed this on Thursday, during an engagement with the Oil Producers’ Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) at the Commission’s regional office in Lagos.

Komolafe called on all investors to participate in the Bid Round process, which he said would commence soon.

“Let me seize this opportunity to announce that, in line with provisions of Section 73 of the PIA, the Commission will conclude the 2022/2023 Mini Bid Round as well as conduct a new Bid Round of 12 Blocks located in the continental shelf and deep offshore. We hereby call on all investors to participate in the Bid Round process that would commence soon for shared prosperity,” he said.

In his address titled “Towards Enhanced Regulatory Landscape for Optimized Value Delivery in the Nigerian Upstream Oil Sector,” Komolafe said that as a Commission, NUPRC values collaboration and partnerships toward promotion of stability, growth, and sustainability of the industry in line with government’s aspirations.

He pointed out that the Commission recognises the value of regulatory stewardship anchored on proactive agenda setting, mutual engagements and participatory oversight to engender positive change for the benefit of both majors and independents players.

“As we drive our collective response to the changing global energy dynamics, the Commission recognises the value of regulatory stewardship anchored on proactive agenda setting, mutual engagements and participatory oversight to engender positive change for the benefit of industry participants – majors and independents alike. We are committed to pursue this stance to deepen trust and entrench regulatory clarity in 2024 and beyond,” he stated.

Last year, President Bola Tinubu at the sidelines of the 78th UN General Assembly in New York, United States, declared that “Nigeria has never been more ready for business than it is now.” The NUPRC boss expressed the Commission’s determination to expand opportunities for existing players and facilitate entrance of new entities.

“As you are aware, concerted efforts are underway to improve business environment and the political ecosystem to attract investments and deepen participation in the key sectors of the Nigerian economy.

“In furtherance of Mr. President’s vision, and in recognition of the imperative for a robust and viable oil and gas sector, the Commission is unwavering in its determination to expand opportunities for existing players and facilitate entrance of new entities. Riding on the charge of Mr. President, we believe that the time is indeed ripe for Nigeria to position itself as a global hub for oil & gas industrial activities.”

In May 2023, the Commission unveiled the NUPRC Corporate and Regulatory Strategy (2023-2033). The 10-year strategic outlook outlines the broad plans which will guide the Commission activities to achieve its mandate as enshrined in the PIA for the upstream oil and gas.

“We have maintained this strategic focus because we recognise the enormous pressure currently being faced by the industry occasioned by climate concerns, net zero emissions targets and the attendant defunding of oil and gas projects.

“The dynamics in the global energy arena necessitate that Nigeria, a country long dependent on the exploitation of oil and gas as the mainstay of its economy, must re-examine its policy to secure its energy future while meeting global climate goals and commitments to the comity of nations.

“Against the foregoing, the Commission has set forth a clear agenda for the upstream petroleum sector, consistent with the PIA and the bordering on aspirations of Government. Our objective is to cultivate an environment that fosters efficiency and ensure that every industry participant, including members of OPTS and IPPG, thrives in a virile, functional, and profitable sector. Our mantra is: “When you succeed; Nigeria succeeds”. Together, we can sustain and grow investments in Nigeria’s upstream for energy security and national economic development – in a sustainable manner – whilst retuning value to all stakeholders,” he noted.

Komolafe also showcased the NUPRC Regulatory Action Plan for 2024 and the Near term, which was issued on January 1, 2024 to set a direction for the industry activities.

He said, “The Regulatory Action Plan is not just a document; it is crafted as a signpost to the industry and stakeholders, the three (3) year focus areas of the Commission to address prevailing industry challenges and harness the opportunities that lie ahead. It is a roadmap that outlines our vision for the upstream oil and gas to enable shared prosperity. It is our firm believe that this parley would afford us the opportunity to x-ray the Action Plan, expatiate the underlining premises and secure vital insights from you that will enrich its implementation.

“We acknowledge that some of the key actions of the Plan may require clarifications and further engagements, particularly as it relates to its implications for your business models, operational architecture, and business plans. Please rest assured that the Commission has considered the possible implications and have designed the Plan with the flexibility to accommodate industry dynamics. Our goal is to enhance and facilitate a business environment that is resilient, adaptable, and aligned with global best practices.”

Responding, the Chairman of OPTS, Mr. Osagie Okunbor, appreciated Komolafe for the regulatory engagement, adding that he looks forward to more of such engagement.

Also responding, the Chairman of IPPG, Abdulrazaq Isa, commended the Commission Chief Executive for the policy action plan, and assured of the association’s commitment to collaborate with the Commission to ensure that the objective is achieved.

Komolafe also met with marginal field awardees. He encouraged them to come together to form an association to make it easier to relate with them.

To put them in a better position to access funding, he said that proactively, the Commission is putting together a code of conduct, as part of regulation, that will help awardees to put proper governance around their businesses.