Energy Expert Hails Komolafe, NUPRC’s Transparency In Oil Licensing Round
The recently concluded Nigeria 2024 Oil Licensing Round conducted by the Nigerian Upstream Regulatory Commission (NUPRC) has been described by an energy expert, Mohammed Musa, as a departure from the opaque practice under the defunct Department of Petroleum Resources (DPR).
Musa said the 2024 Licensing Round, launched in Texas Houston in May was conducted in line with international best practice and driven by technology.
In May, the NUPRC unveiled 17 oil blocks out of which twelve are new blocks namely PPL 300-CS; PPL 301-CS; PPL 3008; PPL 3009; PPL 2001; PPL 2002; PML 51; PPL 267; PPL 268; PPL 269; PPL 270; and PPL 271 including 7 old blocks in the 2022 mini-bid.
The Commission Chief Executive, Engr. Gbenga Komolafe at the launch promised a transparent process.
THE WHISTLER had reported that winners were announced in Lagos last month, where 25 winners emerged, including International Oil Companies (IOCs) like Total Energies that had criticized the country’s oil and gas sector.
The expert explained that the efforts of the NUPRC to conduct a transparent licensing rounds without favouritism and other regulatory reforms introduced by NUPRC convinced the likes of Total Energies that Nigeria is ready for business.
Giving more insight on the licensing round, Musa said, “Notably, the exercise, which proceeded without any issues, resulted in 25 winners based on merit. These 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 secured PPL 303-Do, had NNPC Limited E&P as the reserve bidder. Also, Sifax & Royalgate Consortium won PPL 304, while Homeland Integrated Offshore Services Limited was the reserve bidder.
“Hakilat Oil and Gas Consortium Limited, which won PPL 305, had NNPC E&P Limited as the reserve bidder, and Biswal Oil and Gas Limited won PPL 306, with NNPC E&P Limited again as the reserve bidder,” he explained.”
The expert explained that 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.
Sahara Deepwater Resource Limited also secured PPL 271, with RBO Energy Services Limited as the reserve bidder, while Panout Oil & Gas Limited won PPL 300/301, with Petrolli Energy Marketing & Supply Limited as the reserve bidder.
Musa added that 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 secured PPLs 2003, 2004, and 2005, respectively.
Also 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.
According to him, 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.
The expert highlighted the role of the CCE, Engr. Komolafe in the entire process.
He said Komolafe led the NUPRC to automate its processes including the bid rounds unlike the now-defunct Department of Petroleum Resources (DPR), which managed oil bidding rounds manually.
He said, “The bids were submitted, reviewed, and scored, with verdicts given instantly. In cases of ties, the process was repeated to determine a winner. At the end of the event, all bidders left satisfied with the transparency of the 2024 exercise.”
The energy expert further expressed confidence in NUPRC to conduct the 2025 bid round transparently.
He further hailed NUPRC’s resolve to withdraw discovered but undeveloped fields and reallocated to serious investors ready to maximize their potential benefits to all stakeholders.
In an earlier remark, the CCE Engr. Komolafe reiterated the commission’s commitment to transparency and accountability in the conduct of its affairs.
He pledged adherence to the principles of the Extractive Industries Transparency Initiative (EITI).
On the concluded licensing round, the CCE said the commercial bids, based on prescribed parameters published on the Bid Portal, were processed through an electronic bidding system in the presence of representatives from the Nigerian Extractive Industries Transparency Initiative, the Federal Ministry of Finance, and the Federal Ministry of Petroleum Resources.
He explained, “This licensing round has unique features designed to position the industry for far-reaching benefits.
“With reduced signature bonuses, recent Presidential Executive Orders on non-associated gas (NAG) development, optimized local content, and reduced contracting costs and timelines, we have fostered an enabling environment that strengthens Nigeria’s competitiveness in the global energy market.”
Komolafe noted that with the regulatory oversight of the NUPRC, the energy sector is poised for aggressive exploration and development, driven by the Petroleum Industry Act (PIA) and Presidential Executive Orders.
Energy Expert Hails Komolafe, NUPRC’s Transparency In Oil Licensing Round is first published on The Whistler Newspaper
