Federal Government Commits transparency as the 2024 oil block bid rounds commence.
Written by Jerry Alomatu on April 30, 2024
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), under the direction of the Federal Government, has initiated the process for the 2024 oil bid rounds, unveiling approximately 12 oil blocks available for investment.
Gbenga Komolafe, NUPRC’s Chief Executive, announced this development during the inaugural NEITI House Dialogue hosted by the Nigerian Extractive Industries Transparency Initiative in Abuja on Monday.
Komolafe assured participants of a fair and transparent bidding process for the 12 mainly undeveloped assets on offer, stressing the Commission’s commitment to equity.
He stated, “I am pleased to announce the start of the 2024 licensing round as mandated by the Petroleum Industry Act, beginning at the end of this month. We will actively market these opportunities offshore as part of our mandate.”
“Our responsibilities include promoting the nation’s hydrocarbon resources to potential investors, and we have already begun this process. We have established clear criteria to ensure transparency throughout the process, from start to finish,” Komolafe added.
Regarding the assets available, Komolafe noted, “Most of the assets being made available are greenfield assets, meaning they are undeveloped. Consequently, accurately estimating the revenue they may generate may be challenging due to their undeveloped status.”
He further revealed that NUPRC’s revenue increased to N4.34 trillion in 2023 from N3.78 trillion in 2022. Komolafe projected significant revenue earnings for the country from royalties, taxes, and other levies resulting from the bid round.
“We are currently offering 12 blocks for bidding. However, it’s important to note that we initiated a bidding process in 2022 for 17 offshore assets. Due to circumstances surrounding the last election, we had to temporarily suspend it. Nonetheless, we are now resuming that process and including 12 new bid rounds. Ultimately, we aim to complete the bidding for all 17 blocks and the additional ones on offer by early next year,” Komolafe explained.
Addressing the Commission’s efforts to optimize awarded assets, Komolafe mentioned a comprehensive review underway to identify underperforming blocks. He affirmed the Commission’s intention to revoke awards for idle blocks, adhering to provisions outlined in the Petroleum Industry Act, ensuring that assets are allocated through a fair, competitive, and transparent process.
In closing, Ogbonnaya Orji, the Executive Secretary of NEITI, emphasized the significance of the NEITI House Dialogue as a platform for engaging policymakers in Nigeria’s extractive industries and related sectors, aiming to enhance government oversight and reforms while fostering inclusivity among stakeholders.
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Author: Jerry Alomatu
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