The Nigerian Upstream Petroleum Regulatory Commission said it has received presidential approval to remove all entry barriers to the licensing round including reducing the entry fee to the barest minimum.
This was disclosed by the NUPRC boss, Gbenga Komolafe at the Miami International Roadshow for the 2024 licensing round hosted by the NUPRC in collaboration with the Petroleum Technology Association of Nigeria and Zetse Advisory & Consulting on Tuesday, according to leadership.
Twelve new blocks namely PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271 including 7 old blocks in the 2022 mini-bid are on offer by the NUPRC.
The 2024 block licensing round is scheduled to last for approximately nine months.
Nigeria has a total of 37.5 billion barrels of crude oil and condensates as well as 209.26 trillion cubic feet of natural gas reserves, amounting to more than 30 per cent and 33 per cent respectively on the African continent’s energy supply.
Komolafe said that the decision of the government to abolish entry barriers has made the 2024 licensing round different.
He said, “Nigeria under President Bola Ahmed Tinubu, GCFR as the minister of Petroleum Resources has become a lot more proactive and pragmatic in ensuring that entry does not constitute a barrier to entry for investment in exploration blocks offered.
“As a responsible regulator, the Commission will continue to review the prevailing global investment climate to ensure that the entry fees associated with all licensing rounds are competitive in the context of global realities.
“Broadly speaking, competitive entry fees that are responsive to prevailing realities will be adopted in the 2024 Block licensing rounds. Also, considerations for the commerciality of projects will be made on a case-by-case basis for the determination of appropriate entry fees.”
The NUPRC boss said the Commission would put in place appropriate models to support investments and guarantee value for interested parties as set by the Government, about the 2024 Licensing Round.
He has assured us that there is extensive 2D and 3D seismic data coverage available for the blocks on offer, e.g. Multibeam as well as analogue information.
Komolafe said, “Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders.
“The availability of advanced seismic datasets and analytical tools via our dedicated portals exemplifies our commitment to excellence and technological advancement.”
He also addressed securities concerns noting that the Petroleum Industry Act has provided a fund for the host communities which will help terminate vandalism and theft.
