The federal government has launched a new oil and gas licensing round, inviting bids for as many as 12 onshore and offshore blocks and promising transparency in the bidding process.
At the ongoing Offshore Technology Conference (OTC) in Houston, Texas, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the start of the 2024 Licensing Round.
Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo has called for increased collaboration between public and private sector investors in order for the country to achieve its energy goals.
The minister stated this during the official unveiling of the Gazettes on National Energy Policy and National Energy Master Plan by the Energy Commission of Nigeria at the PTDF auditorium, Abuja on Wednesday.
Ekpo said the task of creating a Nigeria where citizens have access to cheap, unlimited energy is one that must not be left solely for the government.
Said Ekpo: “In order to achieve our energy goals, I implore our respected partners in the public and private sectors to collaborate with one another. To face the difficulties that lie ahead, let’s leverage the power of cooperation, creativity, and technology.”
The minister described the road to a sustainable energy future as a marathon and not a sprint, saying it calls for unyielding resolve, innovative leadership, and unwavering dedication.
According to him, energy plays a critical role in promoting social development, accelerating economic progress, and protecting the environment.
“Future generations will be greatly impacted by the choices that we make today. We can create a Nigeria where everyone has access to cheap, unlimited energy by working together,” he added.
Special Adviser to the President on Energy, Ms. Olu Verheijen who also spoke at the unveiling of the Gazettes said the documents would be presented to the public for further consultation.
The Gazettes reveal the direction of the government’s policies, and also lists the several approaches necessary to accomplish the country’s energy goals.
Present at the event were the Minister of Innovation, Science and Technology, Chief Uche Nnaji; Minister of Defence, Mohammed Badaru Abubakar; Minister of Budget and Economic Planning, Abubakar Atiku Bagudu; Director General/CEO of Energy Commission of Nigeria, Dr. Mustapha Abdullahi, among others.
Meanwhile in his speech at OTC to announce the bidding round, the commission’s chief executive Gbenga Komolafe “reiterated Nigeria’s commitment to advancing its oil and gas sector and highlighted incentives by President Bola Ahmed Tinubu’s leadership aimed at attracting the attention and involvement of international investors,” NUPRC said in a statement on Wednesday.
While acknowledging the changing dynamics of the energy landscape, the CCE observed that Nigeria has adopted a pragmatic approach, ensuring competitive entry fees and commercial viability for investment,” the commission added.
International oil companies have shrunk their exposure to Nigeria’s energy sector in recent years, with transparency in the licensing round one of the reasons for
Big Oil to divest from their Nigerian assets, on top of oil theft and frequent pipeline damages that lead to force majeure on crude oil exports.
Nigeria has been seeking in recent months to address these concerns and Komolafe said in Houston that this year’s licensing round is “expected to be a huge success for Nigeria and is a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation.”
Nigeria, aims to boost its crude oil production in the coming months and years.
The country’s oil production has started to recover in recent months and hit in February its highest level in more than three years amid a concerted effort to crack down on targeted attacks and organised theft rings.
Earlier this year, NUPRC said that Nigeria’s crude oil reserves has increased by 1 billion barrels while natural gas reserves have jumped by 2.573 trillion cubic feet (TCF).
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