The Federal Government of Nigeria has harmonised the criteria for the 2022/23 Mini Bid Round and the 2024 Licensing Rounds to attract fresh investments into the upstream oil and gas sector. This significant move aims to boost confidence in the transparency and continuity of Nigeria’s oil and gas licensing processes.
The announcement was made by the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in a statement on Tuesday. The harmonisation follows the approval by President Bola Ahmed Tinubu, who also serves as the Petroleum Minister, emphasising the government’s commitment to creating an enabling and attractive investment environment in the sector.
In 2022, former President Muhammadu Buhari approved the offering of some deep offshore blocks for the 2022/23 Mini Bid Round. Additional blocks spanning onshore, continental shelf, and deep offshore terrains were also set for the Nigeria 2024 Licensing Round. During last year’s bid round, seven Petroleum Prospecting Licences (PPLs) were available, including blocks PPL-300-DO to PPL-306-DO.
To ensure equity and fairness, the NUPRC sought and obtained approval to unify the bid criteria and minimise entry barriers, thus promoting transparency and providing a level playing field for all investors. The approval also includes attractive fiscal regimes and caps on signature bonuses payable for the award of acreages.
Komolafe stated that the harmonised criteria make the process more attractive than initially during the 2022/23 Mini Bid Round. Consequently, it is in the interest of equity to offer all investors the same opportunity to bid for these assets. The 2022/23 Mini Bid Round registration phase has been reopened to new applicants, and all blocks in both licensing rounds are available to interested investors on the respective bid portals.
Prequalified applicants from the 2022/23 Mini Bid Round will not need to undergo a new pre-qualification process, as their technical submissions remain valid. However, they may choose to submit new Commercial Bids and revise their Bid Bonds to align with the new criteria.
To allow interested investors to take advantage of the expanded opportunities, the NUPRC has extended the deadline for the registration/submission of pre-qualification documents for the 2024 Licensing Round by 10 days. Initially set to close on 25 June 2024, the new deadline is now 5 July 2024. Other key dates, including the Data Access/ Data Purchase/Evaluation/Bid Preparation and Submission phase, have been slightly adjusted.
The Commission also announced the addition of seventeen deep offshore blocks to the 2024 Licensing Round, following the acquisition of additional data. Details on these blocks are available on the bid portal.
The NUPRC’s initiative underscores Nigeria’s commitment to fostering a transparent, efficient, and attractive investment climate in the upstream oil and gas sector. Engr. Komolafe emphasised that the revised criteria and extended deadlines provide a golden opportunity for investors to participate in Nigeria’s thriving oil and gas industry.
The harmonisation of criteria for the 2022/23 and 2024 oil and gas licensing rounds is a strategic move to attract new investments and ensure transparency in the process. With the support of President Bola Ahmed Tinubu and the proactive measures by the NUPRC, Nigeria is poised to strengthen its position in the global oil and gas industry, driving economic growth and sustainable development.
For more information and to participate in the licensing rounds, interested investors can visit br.nuprc.gov.ng and br2024.nuprc.gov.ng.
