The just-concluded Nigeria’s 2024 Oil Licensing Round, organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the regulator of the upstream petroleum sector, has been deemed highly successful.
The reasons are evident. First, the exercise, held at Eko Hotel in Lagos on December 18, 2024, was driven by professionalism and transparency, aligning with global best practices.
Second, the licensing round was enhanced by digital technology, making the process efficient and seamless.
Third, the round was conducted fairly for all participants. Unsurprisingly, it attracted significant interest from stakeholders, including International Oil Companies (IOCs) and their indigenous counterparts.
Sifax & Royalgate, Ocean Gate, MRS, and others emerge winners
The exercise, conducted without any major issues, resulted in 25 winners emerging based on merit. Among the winners were Sifax & Royalgate Consortium and Ocean Gate Engineering Oil, which secured PPLs 300-DO and 302-DO, respectively. MRS Oil and Gas Limited won PPL 303-DO, with NNPC Limited E&P as the reserve bidder.
Additionally, Sifax & Royalgate Consortium won PPL 304, with Homeland Integrated Offshore Services Limited as the reserve bidder. Hakilat Oil and Gas Consortium Limited won PPL 305, with NNPC E&P Limited as the reserve bidder. Biswal Oil and Gas Limited secured PPL 306, also with NNPC E&P Limited as the reserve bidder.
Other winners included:
Petrolli Energy Marketing & Supply Limited (PPL 269) with Afagaf Company Limited as the reserve bidder.
Sahara Deepwater Resource Limited (PPLs 270 and 271) with AMG E&P Company Limited and RBO Energy Services Limited as reserve bidders, respectively.
Panout Oil & Gas Limited (PPL 300/301) with Petrolli Energy Marketing & Supply Limited as the reserve bidder.
Notably, 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.
Further winners included First E&P Development Company Limited, Dewayles International Limited, and Applefield Oil and Gas Limited, which secured PPLs 2003, 2004, and 2005, respectively.
Other notable winners were R28 Holdings Limited, Tulcan Energy E&P Company Limited, and Panout Oil & Gas Limited, among others.
We prioritise transparency and accountability—NUPRC
The NUPRC’s commitment to professionalism and transparency was evident even before the bidding began. In his remarks, the Commission Chief Executive, Engr. Gbenga Komolafe, emphasised:
“As we move forward, it is essential that we prioritise transparency, accountability, and decarbonisation measures in managing our oil and gas sector.”
He reaffirmed the commission’s commitment to openness and alignment with Extractive Industry Transparency Initiative (EITI) principles. He also highlighted features such as reduced signature bonuses, optimised local content, and streamlined contracting processes as pivotal to fostering an enabling environment for investment.
Matching words with actions
True to its word, the NUPRC, under Engr. Komolafe’s leadership conducted the exercise openly and transparently. Unlike previous rounds organised manually by the defunct Department of Petroleum Resources (DPR), the 2024 exercise utilised electronic bidding. This ensured that bids were submitted, reviewed, and scored efficiently, with instant results.
Professionalism and transparency to influence the 2025 exercise
The professionalism and transparency demonstrated during the 2024 round are expected to set a precedent for the 2025 bidding exercise. Investors and financiers have renewed their confidence in Nigeria’s oil and gas industry, thanks to the Petroleum Industry Act (PIA) and recent presidential executive orders aimed at restructuring the sector.
Expected impact
The 2024 licensing round is expected to have a profound impact on Nigeria’s economy, including:
Increased investment in the oil and gas sector, leveraging the country’s vast reserves of over 37 billion barrels of oil and 209 trillion standard cubic feet of gas.
Enhanced domestic supply for refineries and exports, boosting foreign exchange earnings and employment creation.
Technology transfer and the development of local content capabilities.
Don’t keep assets; develop them.
The NUPRC has warned that winners of the oil blocks are not permitted to hoard assets. Instead, they must actively develop them to maximise benefits for themselves and the federal government. Fallow assets, or undeveloped fields, will be recovered and reassigned to serious investors.
Mohammed Musa is an energy analyst.
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