By Adewale Sanyaolu
There are strong indications that the just-concluded Nigeria 2024 Oil Licensing Round, organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the regulator of the upstream petroleum sector, was very successful. The reasons were not far-fetched. First, the exercise, which took place at Eko Hotel in Lagos on December 18, 2024, was driven by professionalism and transparency in line with global best practices. Second, the licensing round was enhanced by digital technology, making it very efficient and seamless. Third, the licensing round was also very fair to all parties. Therefore, it was not surprising that the bidding attracted the participation of many stakeholders, especially International Oil Companies (IOCs) and their indigenous counterparts.
Sifax & Royalgate, Ocean Gate, MRS, others emerge winners
Expectedly, the exercise, which had no issues, culminated in the emergence of 25 winners based on merit. The 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 won 303-Do, has NNPC Limited E&P as the reserve bidder.
Also, Sifax & Royalgate Consortium won PPL 304, while Homeland Integrated Offshore Services Limited remains the reserve bidder. Hakilat Oil and Gas Consortium Limited, which won PPL 305, has NNPC E&P Limited as the reserve bidder, while Biswal Oil and Gas Limited won PPL 306, with NNPC E&P Limited as the reserve bidder.
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. In addition, Sahara Deepwater Resource Limited won PPL 271, with RBO Energy Services Limited as the reserve bidder, while Panout Oil & Gas Limited won PPL 300/301, with Petroli 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 won PPLs 2003, 2004 and 2005, respectively. First E&P Development Company Limited, R28 Holdings Limited, Tulcan Energy E&P Company Limited and Ocean Gate Engineering Oil and Gas Limited 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.
We prioritise transparency, accountability, others — NUPRC
The NUPRC’s commitment to professionalism and transparency was not only intentional but expected even before the opening of the bid. In his early remarks at the event, the Commission Chief Executive of NUPRC, Engr. Gbenga Komolafe, said: “As we move forward, it is essential that we prioritise transparency, accountability, and decarbonisation measures in managing our oil and gas sector.
“Accordingly, the commission has reaffirmed its unwavering commitment to openness and transparency, in alignment with the Extractive Industry Transparency Initiative (EITI) principles.
“The commercial bids, based on bid parameters prescribed and published on the Bid Portal, will be opened and processed through an electronic bidding process. The bids will be conducted in the presence of representatives of the Nigerian Extractive Industry Transparency Initiative, the Federal Ministry of Finance, and the Federal Ministry of Petroleum Resources.
“This Licensing Round is designed with unique features to position the industry to achieve far-reaching benefits. With reduced signature bonuses and the recent Presidential Executive Orders on non-associated gas (NAG) development, optimised local content, and the reduction of contracting costs and timelines, we have fostered an enabling environment that strengthens Nigeria’s competitiveness in the global energy market.
“The nation is poised for aggressive exploration and development,” he added, “and with the sector transformation driven by the Petroleum Industry Act (PIA) and the Presidential Executive Orders, the NUPRC looks forward to the making of early Final Investment Decisions (FIDs) on projects. These milestones will undoubtedly drive economic growth, create jobs, strengthen energy security, and solidify Nigeria’s position as a prime investment destination in the global oil and gas industry.
“However, we are aware of the unique challenges the industry faces today — challenges we must address through collaboration, innovation, and a commitment to global best practices. While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead. Declining production levels and fierce global competition demand strategic action. Interestingly, the PIA has given us a unique opportunity to transform the industry, attract investments, and position Nigeria as a formidable player in the global energy space.”
Matching words with actions
True to its commitments, the Engr. Komolafe-led NUPRC matched words with actions in a very open and transparent manner. This was a sharp departure from the past, when the defunct Department of Petroleum Resources (DPR) used to organise Nigeria’s oil bidding rounds manually.
Bids were submitted, reviewed, and scored, while verdicts were given instantly. Also, where there were ties, the exercise was redone to determine the winner and preferred bidder. In the end, everybody, including bidders, left the venue of the event satisfied that the 2024 exercise was very transparent.
Professionalism, transparency, and others to impact 2025 exercise
Indeed, professionalism, transparency, and other attributes would also impact the 2025 bidding, especially as the NUPRC remains resolute in delivering another successful exercise for Nigeria and the international community. This is highly desirable for several reasons. First, investors and financiers have already renewed their confidence in the nation. Second, the confidence is anchored on major bases, especially the nation’s Petroleum Industry Act (PIA), a comprehensive legislation targeted at restructuring, enhancing investment, and sustainable development of the industry.
Third, it is also anchored on other positive developments, especially President Bola Tinubu’s Presidential Orders – Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; Presidential Directive on Local Content Compliance Requirements, 2024; and Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 — put in place to enable Nigeria, the biggest African market with more than 200 million people, to consolidate as a leading investment destination.
Expected impact
Undoubtedly, the 2024 oil bidding round will significantly impact the nation’s economy. First, it will increase investment in the oil and gas industry, which has more than 37 billion and 209 trillion standard cubic feet of oil and gas reserves, respectively. Second, it will result in increased development activities in the upstream sector, creating many multiplier effects, including contracts and jobs.
Third, it will also boost the nation’s output in line with the President’s directive. Moreover, it will enhance domestic supply to refineries and exports, aimed at enhancing foreign exchange generation, employment creation, technology transfer, and local content development.
Don’t keep assets, develop them
However, as the NUPRC has already cautioned, winners of the oil blocks should note that they are not allowed to buy and keep them. They are expected to develop them to maximise the benefits of the oil and gas assets for themselves and other parties, especially the federal government. They should also note that ‘discovered but undeveloped fields (fallow assets)’ will be recovered and put back into the market for other investors ready to do serious business in the nation’s energy space.