The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the availability of 220 acreages for exploration and investment in Nigeria’s oil and gas sector.
In this context, “acreages” refers to specific tracts of land offered for exploration, drilling, or production activities. These areas can be leased or sold to companies interested in extracting natural resources.
The Nigerian government also reiterated that 31 oil blocks are currently open for investment, encouraging both domestic and international investors to explore opportunities and contribute to the growth of the country’s oil and gas industry.
NUPRC Chief Executive, Gbenga Komolafe, made this announcement during his presentation at the Africa Oil Week in Cape Town, South Africa. His talk, titled “Unpacking the 2024 Nigerian Licensing Round,” emphasized the significance of the upcoming bid rounds.
“There are 31 blocks on offer by the Federal Government of Nigeria,” Komolafe explained. “These include seven deep offshore assets in the mini-bid round, and 24 acreages available for the 2024 licensing round. The bidding process will be fair, transparent, and competitive, following Section 73(1) of the Petroleum Industry Act (PIA).”
He further highlighted Nigeria’s vast crude oil and natural gas reserves, which account for over 30% and 33% of Africa’s total oil and gas resources, respectively. In addition, the country holds a wealth of renewable energy resources.
Komolafe noted that the upcoming licensing rounds present substantial opportunities for both local and international stakeholders to invest in Nigeria’s upstream oil and gas sector. Some of the available blocks include PPL 300, 301, 303, 2000, 3017, 3013, and 3016.
To attract investment, the government has removed the requirement for large upfront signature bonuses, a significant change from past licensing rounds. Komolafe remarked, “Previously, bid rounds attracted hefty signature bonuses, but NUPRC is now more pragmatic, offering incentives through the removal of these burdensome fees.”
He also mentioned that acreage sizes are being adjusted to align with global standards, enhancing Nigeria’s competitiveness in international bid rounds.
In a related development, Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stated that the government anticipates $50 billion in investments by the end of the year, driven by ongoing fiscal reforms in the sector. He added that these reforms have encouraged companies, which had previously exited due to challenging conditions, to return to Nigeria’s oil industry.
