The Federal Government of Nigeria has harmonized the criteria for the 2022/23 Mini Bid Round and the 2024 Licensing Rounds in a move aimed at attracting fresh investments into the upstream oil and gas sector.
The announcement was made by the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in a statement on Tuesday.
In 2022, former President Muhammadu Buhari approved the offering of several deep offshore blocs for the 2022/23 Mini Bid Round, alongside other blocs for the 2024 Licensing Round.
”The recent harmonization aims to enhance transparency and ensure continuity in the bidding process.
”The new criteria include attractive fiscal regimes and minimized entry fees, including a cap on the signature bonus payable for the award of acreages,” Komolafe said.
President Bola Tinubu, also serving as the petroleum minister, approved the measures to create a more favourable investment environment in the upstream sector. The decision is expected to remove entry barriers and boost investor confidence.
”The harmonized criteria will apply uniformly to the 2022/23 and 2024 Licensing Rounds, ensuring a level playing field for all bidders,” Komolafe noted.
The NUPRC has reopened the registration phase for the 2022/23 Mini Bid Round to allow new applicants to participate under the updated terms.
Prequalified applicants from the 2022/23 Mini Bid Round will not need to undergo a new pre-qualification process, but may submit new commercial bids to benefit from the revised criteria.
The Commission has also extended the deadline for the registration and submission of pre-qualification documents for the 2024 Licensing Round by 10 days, now closing on July 5, 2024.
Additionally, data access, purchase, evaluation, and bid preparation for the 2024 Licensing Round will begin on July 8, 2024.
Furthermore, the NUPRC has announced the inclusion of 17 additional deep offshore blocks in the 2024 Licensing Round, following the acquisition of new exploratory data. Details on these blocks are available on the bid portal.
”The harmonization is part of the government’s broader strategy to increase production and derive greater value from Nigeria’s oil and gas reserves,” the NUPRC boss concluded.
Komolafe had earlier announced that the Nigerian government is implementing strategic incentives to lure investment into its oil and gas sector.
According to him, one significant alteration involves replacing signature bonuses — payments made by companies to governments upon contract signing — with lump-sum arrangements for production.
He said this shift, along with efforts to address licensing delays, aims to streamline processes and enhance the investment environment within the country’s oil and gas sector.
