In response to significant interest from both local and foreign investors during the 2022/2023 mini bid round for seven deep offshore oil blocks, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled plans to conduct another mini bid round later this year. This new initiative will offer an additional 12 deep offshore blocks, reinforcing the country’s commitment to expanding its oil and gas sector.
Mr. Gbenga Komolafe, CEO of NUPRC, made this announcement during a parley with members of the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) at the commission’s Lagos Regional Office. The ongoing mini bid round for the seven deep offshore blocks is expected to conclude this year.
The engagement between NUPRC, OPTS, and IPPG had a dual purpose, serving as a platform to set the tone for Nigeria’s oil and gas upstream industry in 2024 and to discuss the NUPRC Regulatory Action Plan for the same period. The Regulatory Action Plan, issued on January 1, 2024, aims to provide a direction for the industry’s activities.
The 2022/2023 mini bid round, initiated in December 2022, covers seven deep offshore blocks known as Petroleum Prospecting Licences (PPLs). These blocks, located off the city of Lagos rather than the traditional Niger Delta region, have attracted attention due to their strategic positioning. The blocks in question are PPL-300-DO, PPL-301-DO, PPL-302-DO, PPL-303-DO, PPL-304-DO, PPL-305-DO, and PPL-306-DO.
Komolafe revealed that the upcoming mini bid round will include 12 oil blocks situated in the Continental Shelf and deep offshore. He encouraged investors to participate in the bid round for shared prosperity, emphasizing the commission’s commitment to creating a resilient business environment aligned with global best practices.
In addition to the bid rounds, NUPRC outlined plans to engage certified metering experts for a technical integrity audit of metering facilities in the Nigerian upstream sector. This audit aims to ensure that metering facilities function at best practices and within industry allowable limits of error.
Furthermore, the commission will conduct a tour of upstream facilities in Nigeria in the weeks ahead as part of its oversight and monitoring functions. NUPRC has also developed a robust framework to address divestment, implement decommissioning and abandonment, and execute the Community Development Trust.
To facilitate open communication between operators and stakeholders, NUPRC will establish a dedicated platform for continuous engagement on the regulatory action plan. Komolafe emphasized that the implementation of the plan would be a collaborative effort for mutual benefits.
Members of OPTS and IPPG expressed appreciation for NUPRC’s engagement and its commitment to the development of the country’s hydrocarbon resources. The commission aims to foster collaboration to propel the Nigerian upstream petroleum industry to greater heights in the coming years.