NUPRC Chief Executive Officer Gbenga Komolafe made this known at the 2024 Licensing Round Commercial Bid Conference in Lagos on Wednesday.
Komolafe said the 2025 exercise will focus on discovered but undeveloped fields and prioritise natural gas development to support Nigeria’s commitment to the UN Sustainable Development Goals.
He also explained that the conference would provide an opportunity to unveil the winners of the last licensing round in an open and transparent way, as enshrined in extant laws and regulations.
“It will also afford us the opportunity to deliberate on the pathways to unlock Nigeria’s vast hydrocarbon potential through licensing rounds.
“Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC to conduct periodic bidding rounds for the award of Petroleum Prospecting Licences (PPLs) and Petroleum Mining Leases (PMLs). This legislation provides a framework for unlocking Nigeria’s energy wealth while ensuring sustainability, equity, and global competitiveness.
“The 2024 Licensing Round, launched in May, represents a significant leap in our hydrocarbon development strategy. The licensing round offers twenty-four (24) carefully selected blocks spanning onshore, shallow water, and deep offshore terrains. Complementing these are the seven deep offshore blocks carried over from the 2022 Mini Bid Round, bringing the total to thirty-one (31) blocks. Together, these assets hold enormous potential for economic growth, energy security, and technological advancement.
“As we move forward, it is essential that we prioritise transparency, accountability, and decarbonisation measures in the management of our oil and gas sector. Accordingly, the Commission has reaffirmed its unwavering commitment to openness and transparency, in alignment with the principles of the Extractive Industry Transparency Initiative (EITI).
“As will be seen here today, the commercial bids, based on bid parameters prescribed and published on the Bid Portal, will be opened and processed through the electronic bidding process. The bids will be conducted in the presence of representatives of the Nigerian Extractive Industry Transparency Initiative, the Federal Ministry of Finance, and the Federal Ministry of Petroleum Resources.”
He noted that the Licensing Round is designed with unique features to position the industry to achieve far-reaching benefits, including investor-friendly terms: streamlined allocation; collaboration for local content development; as well as sustainability commitments.
The NUPRC added that successful bidders will receive their blocks within a few months, culminating in the execution and signing of contract documents.
Payments are expected to be made in full prior to the granting of licences or leases, while awarded blocks will undergo aggressive exploration and development in line with minimum work programme obligations.
“We remain committed to prioritising capacity building and job creation for Nigerians, while delivering optimal value to both our local and foreign investors.
“We will continue to integrate sustainability measures into all E&P activities, safeguarding host communities and protecting the environment,” he assured.
Speaking on the road ahead, Komolafe said the country is now poised for aggressive exploration and development.
He further noted that with the sector transformation driven by the generous fiscal provisions of the PIA and the Presidential Executive Orders, the Commission anticipates: early Final Investment Decisions (FIDs) on projects; a significant uptick in exploration and development drilling; as well as early first oil and gas production across all terrains.
“These milestones will undoubtedly drive economic growth, create jobs, strengthen energy security, and solidify Nigeria’s position as a prime investment destination in the global oil and gas industry.”
He added, however, that, “we are aware of the unique challenges the industry faces today — challenges we must address through collaboration, innovation, and a commitment to global best practices.”
The NUPRC head noted that the Licensing Round is more than a commercial exercise; it is a bold declaration that Nigeria is ready for business.
“It is an opportunity to unlock our hydrocarbon potential, increase production, attract new investors, and drive inclusive economic growth,” he said.
