Winners have been announced in the current 2024 oil licensing bid round in Nigeria, which is an important event where companies compete for the rights to explore and produce oil in specific areas.
On Wednesday, a commercial bid conference took place in Lagos, where the results were revealed. Several companies were awarded licenses for different oil blocks. For example, the SIFAX & RoyalGate Consortium won the rights to explore a block called PPL 300-DO. OceanGate Engineering Oil and Gas Ltd secured rights to two blocks, PPL 302-DO and PPL 3007. Another company, Homeland Integrated, won the license for PPL 304-DO. The Hakilat Oil & Gas Consortium Ltd managed to beat out the Nigerian National Petroleum Corporation Exploration & Production (NNPC E&P) to win the PPL 305-DO license, and BISWAL Oil & Gas Ltd also outperformed NNPC E&P to claim PPL 306-DO.
In a closely contested bid, MRS Oil & Gas eventually triumphed over NNPC E&P to secure PPL 303-DO. Other companies also won licenses: Petroli Energy Marketing and Supply Ltd was awarded PPL 269, while Sahara Deepwater Resources Ltd won both PPL 270 and PPL 271. Panout Oil & Gas successfully outbid TotalEnergies and three other competitors for PPL 300/301 CS, and they also won PPL 3015. Additionally, TotalEnergies E&P was awarded PPL 2000/2001.
Some companies were the only bidders for their respective licenses: BISWAL won PPL 2002, First E&P secured PPL 2003 and PPL 2006, Deywayles International Limited got PPL 2004, and Applefield Oil & Gas won PPL 2005. R28 Holdings Ltd won PPL 2007 and PPL 3011, while Tulcan Energy E&P claimed PPL 2008 and 3012. Broron Energy secured PPL 2009, Hakilat Oil & Gas won PPL 3016, and Applefield Oil & Gas took home PPL 3017.
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During the announcement, Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), mentioned that there will be another oil licensing round in 2025. He explained that the commission aims to hold these licensing rounds every year to increase oil production in Nigeria.
Komolafe emphasized the importance of this initiative, stating that the upcoming 2025 licensing round will focus on areas that have not yet been fully explored. He noted that while the industry has made significant strides, there are still challenges to address, such as declining production levels and competition from other countries. The Petroleum Industry Act, which governs the industry, provides an opportunity to attract more investments and enhance Nigeria’s position in the global oil market.
He further explained that the NUPRC’s goal is to restore confidence among investors in the oil sector, and they are committed to ensuring that their actions comply with the rules set out in the Petroleum Industry Act. Although the law does not specifically mandate annual licensing rounds, the NUPRC believes that holding them regularly is essential for the growth and management of Nigeria’s oil resources.
Additionally, Komolafe mentioned that the commission is working on recovering unused oil assets through a provision in the Petroleum Industry Act known as “drill or drop.” This means that if companies do not actively explore and develop certain oil fields, those rights can be taken back and offered to other interested bidders. The NUPRC aims to revitalize these idle assets to ensure that they are utilized effectively, rather than sitting unused, as this is not the intention of the Petroleum Industry Act.
