Key points
- NUPRC has signed concession contracts and begun issuing 19 Petroleum Prospecting Licences to successful bidders in the 2024 Licensing Round.
- The licences cover deep offshore, shallow water and continental shelf assets awarded to 12 companies.
- The contracts establish the legal and commercial framework for exploration under the Petroleum Industry Act.
- The commission says the exercise will attract investment, boost exploration and increase Nigeria’s hydrocarbon reserves.
Main story
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken another step in implementing the 2024 Licensing Round by signing concession contracts and commencing the issuance of 19 Petroleum Prospecting Licences (PPLs) to successful investors.
The exercise, conducted during the Nigeria Oil and Gas (NOG) Energy Week in Abuja, involved 12 awardees that secured exploration blocks across Nigeria’s deep offshore, shallow water and continental shelf basins.
The signing ceremony was led by the Chairman of the NUPRC Governing Board, Magnus Abe, alongside the Commission Chief Executive, Oritsemeyiwa Eyesan, the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, and other senior officials.
Among the companies that received licences were Boron Energy Limited, Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulkan Energy E&P Company Limited, with Sahara Deepwater Resources securing two petroleum prospecting licences.
The concession agreements establish the legal, fiscal and commercial terms that will govern the licence holders under the Petroleum Industry Act (PIA) 2021 and represent a key requirement before the formal grant of exploration rights.
According to the commission, the licensing process forms part of broader efforts to attract fresh capital into Nigeria’s upstream petroleum sector, stimulate exploration activities and expand the country’s hydrocarbon resource base.
NUPRC also said the newly awarded assets demonstrate the range of investment opportunities available across Nigeria’s petroleum industry and are expected to support increased production while strengthening investor confidence over the long term.
While several successful bidders completed the contract signing during the conference, the commission said the remaining awardees would execute their agreements on mutually agreed dates.
The issues
Nigeria is seeking to attract new upstream investment following reforms introduced under the Petroleum Industry Act. By issuing new exploration licences, the government aims to accelerate hydrocarbon exploration, increase reserves, boost future crude oil and gas production and sustain long-term revenue generation.
What’s being said
“The exercise marked another milestone in efforts to attract fresh investment into the upstream petroleum industry, accelerate exploration activities and increase the nation’s hydrocarbon reserves.” — Nigerian Upstream Petroleum Regulatory Commission
What’s next
The remaining successful bidders are expected to sign their concession contracts before receiving their Petroleum Prospecting Licences, paving the way for exploration activities across the newly awarded blocks.
Bottom line
The commencement of licence issuance under the 2024 Licensing Round signals continued implementation of Nigeria’s petroleum reforms and the government’s drive to attract new investment into the upstream oil and gas sector.
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