July 21, 2024
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OIL & GAS

NUPRC Sets Standards for 2024 Oil Block Bid

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the 2024 oil block bid will exclude firms and investors lacking financial capacity and technical competence.

NUPRC CEO, Gbenga Komolafe, revealed these details at the 2024 pre-bid conference in Lagos on Tuesday.

The event, themed “Unveiling Nigerian Energy Development Strategies: 2024 Licencing Round,” highlighted the government’s intent to avoid past pitfalls where over 90% of marginal fields remained undeveloped despite being licensed.

Komolafe emphasized, “The 2024 bidding round is meant for investors with financial capacity and technical competence. In the past, the award of oil blocks culminated in the non-development of over 90 per cent of marginal fields, thus denying the federal government the opportunity to reap the intended benefits. This is because such awards were not based on technical and financial considerations.”

In May 2024, NUPRC commenced bidding for 12 oil blocks listed for sale in Nigeria. This step aligns with the government’s broader strategy to attract significant investments in the oil sector. Recently, international oil companies committed $16 billion in investment to the Nigerian oil industry, highlighting the country’s potential as a key player in the global energy market.

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