NUPRC Extends 2024 Licensing Bid Registration By 10 Days

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced an extension to the 2024 licensing bid round registration by 10 days.

The Commission chief executive, Gbenga Komolafe, who shared this in Abuja on Tuesday, said the extension is to allow interested investors to take advantage of the expanded opportunities.

Komolafe explained that in pursuit of the commission’s commitment to derive value from the country’s abundant oil and gas reserves and increase production, the commission has been working assiduously with multi-client companies, to undertake more exploratory activities, acquire more data to foster and encourage further investment in the Nigerian upstream sector.

He added that as a result of additional data acquired concerning deep offshore blocks, the commission has added 17 deep offshore blocks to the 2024 licensing round.

Just a few days ago, the NUPRC announced the commencement of the 2024 Licencing Round at the Offshore Technology Conference in Houston, Texas.

At the event, Komolafe reiterated Nigeria’s commitment to advancing its oil and gas sector, and highlighted incentives by President Bola Tinubu’s leadership aimed at attracting the attention and involvement of international investors.

He explained that the licensing round offers selected blocks, spanning diverse geological formations with great potential for economic growth, and energy security for shared prosperity.

Komolafe also pointed to the regulatory framework anchored by the Petroleum Industry Act 2021, aimed at entrenching fairness and transparency, thereby fostering confidence among investors.

The statement was titled: “Nigeria Oil Block Licensing Round Updates on 2022/2023 and 2024 Licensing Rounds.”

He said: “To allow interested investors to take advantage of the expanded opportunities, the 2024 Licencing Round Schedule has been amended as follows:

“Registration/Submission of Pre-Qualification Documents which was initially scheduled to close on 25 June 2024 has been extended by 10 days and will now close on 5 July 2024.

He said Data Access/ Data Purchase/Evaluation/Bid Preparation and Submission which was initially scheduled to open on 4 July 2024 and close on 29/11/24 will now start on 8 July 2024 and close on 29/11/24 as previously scheduled.”

Komolafe noted that all other dates in the published 2024 Licencing Round Schedule remain the same unless otherwise communicated.

He further explained that in pursuit of the Commission’s commitment to derive value from the country’s abundant oil and gas reserves and increase production, the Commission has been working assiduously with multi-client companies to undertake more exploratory activities to acquire more data to foster and encourage further investment in the Nigerian upstream sector.

He added that as a result of additional data acquired in respect of deep offshore blocks, the Commission has added 17 deep offshore blocks to the 2024 Licensing Round. Further details on the blocks can be found on the bid portal.

Komolafe said Petroleum Processing Lease PPL 300-CS & PPL 301-CS, PPL 2000 and PPL 2001, which the commission has advised bidders to apply for in clusters may now be applied for as single units.

“Lastly, in accordance with the published guidelines, we had earlier indicated that some of the assets on offer should be applied for as clusters, namely: PPL 300-CS & PPL 301-CS, PPL 2000 and PPL 2001.

” Bidders are hereby advised that they may, at their option, bid for those blocks as clusters or as single units,” he said.

Komolafe recalled that some deep offshore blocks were put on offer for the 2022/23 Mini Bid Round and other blocks which cut across onshore, continental shelf and deep offshore terrains were also put on offer for the Nigeria 2024 Licencing Round.

In order to vacate entry barriers,  he said, the Commission had sought and obtained the approval of Mr. President, Bola Ahmed Tinubu, who, as Petroleum Minister, in line with his avowed determination to create enabling and attractive investment regimes in the upstream oil and gas sector, approved attractive fiscal regimes and also minimised entry fees for both licencing rounds by putting a cap on the signature bonus payable for award of the acreages.

Komolafe said: “Consequently, it is necessary to ensure that the same bid criteria (in addition to the uniform signature bonus criteria) are applicable for both licencing rounds, to promote transparency and provide a level playing ground for all bidders.

“Since the criteria for the award of the oil blocks are now much more attractive than they initially were during the 2022/23 Mini Bid Round, it is in the interest of equity and fair play to give all investors the same opportunity to bid for the assets.  Consequently, all blocks in the 2022/23 and 2024 Licencing Rounds are available to all interested investors on br.nuprc.gov.ng and br2024.nuprc.gov.ng respectively, and the 2022/23 Mini Bid Round registration phase is reopened to new applicants.

“The public is therefore invited to take advantage of this development and attractive entry terms and conditions and participate in the exercise.

However, all the pre-qualified Applicants published on the 2022/23 Mini Bid Round portal will not be required to go through a new pre-qualification process, as their technical submissions remain valid and eligible even for the 2024 Licencing Round.

” They may however wish to resubmit new Commercial Bids to take advantage of the more attractive criteria applicable to both licensing rounds and revise their Bid Bonds to adapt to the new bid criteria. They are also free to bid for blocks on offer in the 2024 Licencing Round.”