Unveiling The Nigerian 2024 Licensing Round Presented by ENGR. GBENGA KOMOLAFE, (D.Sc.), FNSE, OFR. Commission Chief Executive, NUPRC at The Miami International Roadshow for 2024 Licensing Round Hosted by NUPRC in Collaboration with PETAN Ritz-Carlton Resort Miami Beach, Miami, Florida |14th May 2024
2 Protocols Honorable Minister of State, Petroleum Resources (Oil), Your Excellencies, Distinguished Senators, Honourable Members of The House of Representatives, Federal Republic of Nigeria, Captains of Industry, Gentlemen and Ladies of the Press, Ladies and Gentlemen, I am very much delighted and highly honoured to speak to you at this Miami International Roadshow for 2024 Licensing Round Hosted by NUPRC in Collaboration with PETAN. This is undoubtedly a unique gathering of the oil and gas industry professionals, business leaders and investors in the world. It is truly a pleasure to gather here today, amidst the vibrant energy of Miami, to explore the vast opportunities in Nigeria’s 2024 Licensing Round—an unprecedented opportunity to unlock Nigeria’s vast hydrocarbon potential, attract investment, and propel our nation towards greater economic prosperity and shared prosperity. It is with immense pride and a profound sense of responsibility that I represent Nigeria’s upstream oil and gas regulator at this engagement.
- Permit me to begin this presentation by conveying my heartfelt appreciation and commendation to PETAN, the Petroleum Technology Association of Nigeria, for their unwavering support and collaboration in organizing this roadshow. PETAN’s commitment to promoting excellence, innovation, and growth in Nigeria’s oil and gas industry is truly commendable, and their partnership has been instrumental in bringing this event to fruition. I would also like to express our sincere gratitude to Zeste Advisory and Consulting Services for their exemplary efforts in organizing this roadshow. Their dedication, professionalism, and expertise have been invaluable in orchestrating an event that promises to foster interaction, networking, and partnerships aimed at stimulating investments and growth in the Nigerian oil and gas industry.
- Distinguished Ladies and Gentlemen, today we gather to discuss and deliberate on pathways to our collective energy future as we progress through an era of unprecedented challenges and opportunities. Under the visionary leadership of His Excellency President Bola Ahmed Tinubu and the Honourable Minister of Petroleum Resources, Nigeria has embarked on a transformative agenda that aligns with the most stringent global standards and commitments. The recent Presidential Executive Orders issued in March this year, were aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector. The Executive Orders were generously targeted to incentivize oil and gas development, introduced measures to balance the implementation of Nigerian Oil and Gas Industry Content Development Act, 2010 to ensure that oil and gas development is not hindered by local content bottlenecks. The Executive Orders also include directives on reduction of contracting costs and timelines to enhance global competitiveness of our oil and gas industry and achieving higher rate of return on oil and gas investments.
- Ladies and Gentlemen, as a nation, Nigeria is endowed with 37.5 Billion barrels of Crude Oil and Condensate Reserves and 209.26 Trillion Cubic Feet of Natural Gas Reserves representing above 30% and 33% respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources. It is towards the exploitation and optimization of this abundant Hydrocarbon resources that Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC as the Industry Regulator to conduct bidding rounds for the award of PPLs and PMLs pursuant to the Act and applicable Regulations. It is on this premise that the Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is pleased to announce the commencement of the 2024 Licensing Round at this Global event for participation by International Investors with financial and technical capacity.
- The exercise, which was initially announced on the 29th of April 2024, is a significant leap in our strategic hydrocarbons development initiative. This round introduces twelve meticulously selected blocks across diverse geological spectra — from the fertile onshore basins to the promising continental shelves and the untapped depths of our deep offshore territories. Each block has been chosen for its potential to bolster our national reserves and stimulate economic vitality.
- Ladies and Gentlemen, permit me to express that the NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.
- In keeping with the provisions of the PIA and regulations made under the Act, the Commission has issued a licensing round guideline and published a licensing round plan for the twelve 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). In addition to these blocks, the seven deep offshore blocks from the 2022 Mini-Bid Round Exercise which cover an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m shall also be concluded along with this Licensing round.
- Ladies and Gentlemen, to ensure the seamlessness of the Licensing Round exercise, the NUPRC, in collaboration with our National Data Repository and multi-client partners, guarantees access to comprehensive and high-quality geological data, facilitating informed decision-making and strategic investments. The blocks on offer have extensive 2D and 3D seismic data coverage, including multi-beam and analog data. Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders. The availability of advanced seismic datasets and analytical tools via our dedicated portals exemplifies our commitment to excellence and technological advancement.
- Distinguished Investors and Industry Captains and Stakeholders, the Licencing Round is indeed expected to be a huge success for Nigeria and is a big step towards growing the nation’s oil and gas reserves through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and end to end development across the value chain, strengthening energy security and economy, providing occasion to gainfully engage the pool of competent companies in the oil & gas sector with multiplier effect in employment opportunities, enabling transfer of technology, valorizing petroleum assets in the Nigerian Territory and attracting investments. In addition, the Licencing Round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI).
- On the global scale, the Licensing Round will no doubt be beneficial to all stakeholders and will in the long run contribute to long-term global energy sufficiency. Interestingly, the Licensing Round process was formulated in cognisance of global energy sustainability goals. The implementation process will, in addition to technical and commercial considerations, Page | 10 pay the requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares as well as overall environmental, social and governance (ESG) considerations. The oil and gas industry in Nigeria has embraced the reality of energy transition and is taking strategic position to leverage on the opportunities presented by the unfolding era. However, it is worthy to recognize that recent events around the globe indicate that fossil fuels will continue to be a core part of the global energy mix well into the future, even beyond the set 2050 targets for achieving net-zero carbon emission.
- In addition, recognizing that the era of frontloaded huge signature bonuses is over, Nigeria under President Bola Ahmed Tinubu, GCFR as the Honorable Minster of Petroleum Resources has become a lot more proactive and pragmatic in ensuring that entry fees do not constitute a barrier to entry for investment in exploration blocks offered. As a responsible regulator, the Commission will continue to review the prevailing global investment climate to ensure that the entry fees associated with all licensing rounds are competitive in the context of global realities. Broadly speaking, competitive entry fees that are responsive to prevailing realities will be adopted in the 2024 Block licensing rounds. Also, considerations for the commerciality of projects will be made on a case-bycase basis for the determination of appropriate entry fees. In the case of the 2024 Licensing Round, the Commission will implement suitable models that support investments and guarantee value for stakeholders in accordance with the government aspirations.
- The 2024 Block Licensing Round is scheduled to last for approximately nine (9) months and all interested parties are invited to visit the dedicated NUPRC portal: www.br2024.nuprc.gov.ng for details on how to participate. We have also provided an official email address, phone numbers and dedicated support line to guide applicants through the Licensing Round process. Big Question: Why Participate in Nigeria 2024 Block Licensing Round?
- Ladies and Gentlemen, as we launch the Nigerian 2024 Block Licensing Round today at this Miami Roadshow, we warmly extend invitation to our global partners to join us in this venture. The guidelines for participation are structured to ensure fairness and strategic partnership, fostering not just economic returns but also technological exchange and capacity building.
- Distinguished ladies and gentlemen, this 2024 Block Licensing Round is not merely a transactional opportunity; it is a testament to Nigeria’s commitment to advancing a resilient and sustainable Industry. As we stand at the threshold of history in our energy sector, let us collaborate to harness the opportunities that promise not only to meet the immediate needs of our growing economies but also to secure a sustainable future for the next generations for shared prosperity.
- Finally, while I thank you for your warm attendance and participation at this Roadshow, let us pave way for an energy-secure world anchored on innovation, sustainability and inclusivity.
- Thank you for your attention.
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