An energy sector analyst has attributed the success of the just-concluded Nigeria 2024 Oil Licensing Round to the professionalism and transparency of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which operated in line with global best practices.
Acknowledging the success, the analyst, Mohammed Musa, stated that the exercise was enhanced by digital technology, making it highly efficient and seamless.
Additionally, he noted that the licensing round was fair to all parties, attracting participation from many stakeholders, including International Oil Companies (IoCs) and their indigenous counterparts.
The exercise, which took place in Lagos, recorded 25 winners, according to Musa.
“Notably, the exercise, which proceeded without any issues, resulted in 25 winners based on merit. These winners included Sifax & Royalgate Consortium and Ocean Gate Engineering Oil, which won PPLs 300-Do and 302-Do, respectively.
MRS Oil and Gas Limited, which secured PPL 303-Do, had NNPC Limited E&P as the reserve bidder.
Also, Sifax & Royalgate Consortium won PPL 304, while Homeland Integrated Offshore Services Limited was the reserve bidder.
Hakilat Oil and Gas Consortium Limited, which won PPL 305, had NNPC E&P Limited as the reserve bidder, and Biswal Oil and Gas Limited won PPL 306, with NNPC E&P Limited again as the reserve bidder,” he explained.
He further highlighted other winners, stating:
“Petrolli Energy Marketing & Supply Limited won PPL 269 with Afagaf Company Limited as the reserve bidder, while Sahara Deepwater Resource Limited won PPL 270, with AMG E&P Company Limited as the reserve bidder.
Sahara Deepwater Resource Limited also secured PPL 271, with RBO Energy Services Limited as the reserve bidder, while Panout Oil & Gas Limited won PPL 300/301, with Petrolli Energy Marketing & Supply Limited as the reserve bidder.
Total Energies E&P Nigeria won PPL 2000, with Star Deepwater Petroleum Limited as the reserve bidder, while Biswal Oil and Gas Limited won PPL 2002.
First E&P Development Company Limited, Dewayles International Limited, and Applefield Oil and Gas Limited secured PPLs 2003, 2004, and 2005, respectively.
Other winners included First E&P Development Company Limited, R28 Holdings Limited, Tulcan Energy E&P Company Limited, and Ocean Gate Engineering Oil and Gas Limited, which won PPLs 2006, 2007, 2008, and 2009, respectively.
Finally, R28 Holdings Limited, Tulcan Energy E&P Company Limited, Panout Oil & Gas Limited, Hakilat Oil and Gas Consortium Limited, and Applefield Oil and Gas Limited won PPLs 3011, 3012, 3015, 3016, and 3017, respectively.”
In his earlier remarks, the Chief Executive of NUPRC, Engr. Gbenga Komolafe, emphasized the commission’s commitment to transparency, accountability, and decarbonization measures in managing Nigeria’s oil and gas sector. He reaffirmed the commission’s adherence to the principles of the Extractive Industries Transparency Initiative (EITI).
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According to Komolafe, the commercial bids, based on prescribed parameters published on the Bid Portal, were processed through an electronic bidding system in the presence of representatives from the Nigerian Extractive Industries Transparency Initiative, the Federal Ministry of Finance, and the Federal Ministry of Petroleum Resources.
“This licensing round has unique features designed to position the industry for far-reaching benefits. With reduced signature bonuses, recent Presidential Executive Orders on non-associated gas (NAG) development, optimized local content, and reduced contracting costs and timelines, we have fostered an enabling environment that strengthens Nigeria’s competitiveness in the global energy market,” Komolafe said.
He added that the sector is poised for aggressive exploration and development, driven by the Petroleum Industry Act (PIA) and Presidential Executive Orders. He projected early Final Investment Decisions (FIDs) on projects, which would boost economic growth, create jobs, and solidify Nigeria’s position as a prime investment destination in the global oil and gas industry.
Reflecting on the exercise, Musa praised the Engr. Komolafe-led NUPRC for its openness and transparency, describing it as a sharp departure from past practices under the now-defunct Department of Petroleum Resources (DPR), which managed oil bidding rounds manually.
“The bids were submitted, reviewed, and scored, with verdicts given instantly. In cases of ties, the process was repeated to determine a winner. At the end of the event, all bidders left satisfied with the transparency of the 2024 exercise,” Musa said.
He expressed confidence that the professionalism and transparency displayed in this round would positively influence the 2025 bidding process, fostering renewed investor confidence in Nigeria’s oil and gas sector.
Musa also highlighted the expected economic impacts of the 2024 bidding round, which include increased investments in an industry with over 37 billion barrels of oil reserves and 209 trillion standard cubic feet of gas reserves, expanded upstream sector activities, and numerous multiplier effects such as contracts, job creation, and technology transfer.
He concluded by reiterating the NUPRC’s caution to winners: “Winners of oil blocks must utilize their assets effectively. ‘Discovered but undeveloped fields (fallow assets)’ will be recovered and reallocated to serious investors ready to maximize their potential benefits to all stakeholders, especially the federal government.”
