- The Nigerian National Petroleum Company Exploration and Production Limited lost in the oil licencing bid round, while TotalEnergies, MRS, and others win
- The Nigerian Upstream Petroleum Regulatory Commission said it will organise another licencing bid round in 2025
- NUPRC said it will enforce the ‘drill or drop’ provision of the Petroleum Industry Act
The Nigerian National Petroleum Company Exploration and Production Limited (NNPC E&P), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), lost out in the just-concluded oil licensing bid round organised by the Federal Government.
At the conclusion of the bid round, indigenous companies, including TotalEnergies, SIFAX, MRS, Applefield, FIRST E&P, and Sahara Deepwater, among others, emerged as winners.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, announced the winners at the licensing round commercial bid conference held in Lagos on Wednesday, December 18.
During the electronic bidding process, NNPC E&P bid for three deep offshore assets – PPL 303, PPL 305, and PPL 306 – which it lost to other companies. However, Komolafe said NNPCL is a reserved bidder for the three assets.
Details of Petroleum Prospecting Licences
Out of the 31 blocks put on offer in the first bid round under the Petroleum Industry Act (PIA) 2021, the NUPRC disclosed that 25 were bid for, saying that the remaining six will be included in the next bid round.
Details of the bid round show that TotalEnergies won a block out of the two it contested for. SIFAX & RoyalGate Consortium won PPL 300-DO; OceanGate Engineering Oil and Gas Ltd won PPL 302-DO and PPL 3007, and Homeland Integrated won PPL 304-DO.
Hakilat Oil & Gas Consortium Ltd defeated NNPC E&P to clinch PPL 305-DO; BISWAL Oil & Gas Ltd also defeated NNPC E&P to win PPL 306-DO. After having a tie, MRS Oil & Gas also defeated NNPC E&P to win PPL 303-DO.
Petroli Energy Marketing and Supply Ltd got PPL 269; Sahara Deepwater Resources Ltd won both PPL 270 and PPL 271; Panout Oil & Gas beat TotalEnergies and three other bidders to secure PPL 300/301 CS. Panout also claimed PPL 3015, and TotalEnergies E&P won PPL 2000/2001.
As sole bidders, BISWAL won PPL 2002; First E&P has PPL 2003 and PPL 2006; Deywayles International Limited secured PPL 2004; Applefield Oil & Gas got PPL 2005; R28 Holdings Ltd won PPL 2007 and PPL 3011; Tulcan Energy E&P won PPL 2008 and 3012; Broron Energy secured PPL 2009; Hakilat Oil & Gas claimed PPL 3016; and Applefield Oil & Gas won PPL 3017.
NUPRC to organise another licencing bid round in 2025
The NUPRC also disclosed another oil licencing bid round will hold in 2025 and annually to boost oil production. Komolafe noted that the 2025 exercise would focus on unexplored and fallow assets.
He said, “While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead. Declined production levels and failed global competition demand strategic action. Interestingly, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investments, and position Nigeria as a forefronter.
“To this end, I am pleased to announce that the NUPRC will launch another licensing round in the year 2025. Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets, and prioritise natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals.”
NUPRC will enforce ‘drill or drop’ PIA provision
Komolafe added that it will enforce the implementation of the “Drill or Drop” provision under the PIA, which mandates that idle blocks be reclaimed and re-auctioned to ensure optimal utilisation of resources.
He said, “There is a provision in the Petroleum Industry Act that speaks to ‘drill or drop’. So, we have been having engagements with the industry to ensure that unexplored areas and resources are harvested back into the basket; and we have done this. We intend to rebuild those idle assets, because a lot of our assets remain idle, and that is not the intent of the Petroleum Industry Act.
“So as a commission and as a regulator, we have started activating the drill or drop provisions of the Petroleum Industry Act, which is intended to ensure that our assets do not just remain idle. So, we are harvesting them into the basket, and we will ensure that they go for bidding to interested bidders in the next licensing round.”
NNPCL unveils Utapate crude grade to global market, eyes 80,000 bpd by 2025
Meanwhile, TheRadar reported that the Nigeria National Petroleum Corporation Limited (NNPCL) officially unveiled Utapate crude oil blend to the global crude oil market as part of efforts to boost Nigeria’s crude oil production, revenue generation and economic growth.
According to the statement by the Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, the Utapate crude oil grade was unveiled during a ceremony held at the Argus European Crude Conference in London, United Kingdom, on Wednesday, November 20.
