Bid round: NUPRC pledges congenial regulatory, fiscal environment
Sopuruchi Onwuka
Federal government has assured investors participating in the country’s 2024 licensing round for oil blocks that the processes have crossed significant stages, promising that new investors in the nation’s petroleum pay are guaranteed attractive operating terms.
According to the Commission Chief Executive (CCE) of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), “it was pertinent to note that registration and submission of pre-qualification documents have been concluded, a pre-bid conference has been held, and evaluation of submissions and notification of the pre-qualified have also been carried out.”
The preliminary arrangements, he said, were done in accordance with the stipulated schedule. He added that the next stage in the process would be the submission of technical and commercial bids.
The pledges and process clarifications came as more African countries announced schedules for licensing rounds, pledging similar congenial operating conditions for new players in a prevailing fray to capture limited international investible funds in petroleum exploration and production,.
Nigeria’s lease acreage administrator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), flaunts regulatory certainty, attractive fiscal regimes, ease of doing business and reduced entry barriers as it engages bidders on some 31 oil blocks currently on offer.
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At the ongoing Africa Oil Week hosted by Sankofa Events in Cape Town, South Africa, three African nations -Liberia, Tanzania and Zanzibar- declared planned bidding rounds for the licensing of new blocks for oil and gas exploration, inviting bids from upstream industry investors.
Engr. Komolafe, who also attended the event, took time to run through ongoing processes in sifting through bidders available 31 oil blocs in the upcoming Nigerian licensing round. He said the 2024 Nigerian licensing round is supported by a strong regulatory framework, stable policy environment and fiscal incentives provided by the government in the Petroleum Industry Act (PIA).
Apart from Nigeria, calls from officials of three other countries offering petroleum licenses formed the highlights of the AOW, with each country flaunting attractive features in its operating environment.
President and CEO of the National Oil Company of Liberia, Saifuah Mai Gray, told investors that the country is ready for business, saying, “We are willing and ready to work with all of you, our partners, so that we all can succeed.”
Deputy Director General & Head of Technical Services at the Liberia Petroleum Regulatory Authority, Rufus Tarnue, disclosed ate the event that there would be 29 blocks available in terms of the latest licensing programme.
Director General of the Petroleum Upstream Regulatory Authority of Tanzania, Charles Sangweni, encouraged investors to take advantage of developed infrastructure in the country’s petroleum industry.
“Our country has a well-developed gas pipeline infrastructure and is ready to go to the next phase of our development,” he said, adding that Tanzania licensing round offers 24 open defined exploration blocks in the offshore Indian Ocean, and in Lake Tanganyika, in the country’s west.
Head of Zanzibar’s Petroleum Regulatory Authority, MD Mohammed Said, said the process for the country’s first licensing round consists of eight blocks, ranging in size between 2 846km² and 5 666km² at depths between 500m and 3 000m.
“We are delighted to welcome investors to take advantage of the enormous upstream opportunities available in Zanzibar,” he said.
Engr Komolafe who made presentation on Nigeria’s 2024 Licensing Round, declared that “the combination of robust natural resources, competitive regulatory framework and strategic incentives has created a favorable environment for investors.”
He said the bid round offers investors a significant opportunity to contribute to and benefit from Nigeria’s long-term energy growth.
Engr Komolafe told investors that Nigeria boasts vast untapped potential, including 209.26 trillion cubic feet (TCF) of Natural Gas reserves, 37.5 billion barrels of crude oil reserves, and an oil production capacity of 2.4 million barrels per day (bopd).
He explained that the PIA has enabled the Commission introduce comprehensive reforms and developed a regulatory framework to modernize the licensing processes, enhance stakeholder engagement, and ensure environmental sustainability.
“The aim is to attract both local and international investments that will drive growth and innovation,” he said.
“The licensing round features several blocks selected across varied geological terrains — from the promising onshore basins to the lucrative continental shelves and the unexploited depths of our deep offshore basins,” he stated.
According to him, the NUPRC has outlined a clear roadmap for interested investors which includes prequalification process where companies had to demonstrate technical and financial capabilities, Technical and Commercial Bid Submission, Evaluation of Bids and Bid Conference, Award of Licenses or Leases and periodic assessments of Awardees.
The measures, according to him, are to facilitate a smooth licensing process.
The CCE pointed to key geological advantages that facilitate oil and gas production and export’ He listed the country’s population which stands at approximately 207 million, with 853 km of coastline.
With 49 producing companies, 251 fields in production, 2,717 Oil-producing strings and 125 gas wells already operational, the sector is primed for expansion, Engr. Komolafe added.
