The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has moved into the commercial stage of its oil and gas licensing round, with 143 companies competing for 50 blocks across Nigeria’s established and emerging hydrocarbon basins.
The invitation-only commercial bid conference will take place in Abuja, marking another step in the licensing process that has attracted strong interest from companies seeking opportunities in Nigeria’s upstream petroleum sector.
According to a statement by NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, companies that successfully completed the prequalification stage have been notified and invited to attend the commercial bid conference in person.
The 50 blocks available for bidding are spread across several geological areas. They include 16 blocks in the Niger Delta Onshore, 18 in the Niger Delta Shallow Water, one in the Niger Delta Deep Offshore, three in the Benin Basin Onshore, four in the Anambra Basin Onshore, four in the Chad Basin Onshore, and four in the Benue Trough.
The commission stated that qualified companies that met the requirements of the prequalification process have been invited to the commercial bid conference, which will be held at the Conference Centre of the Transcorp Hilton Hotel in Abuja. Attendance is restricted to invited participants.
NUPRC explained that the bid evaluation will focus on three main criteria: the signature bonus, the proposed work program, and the commitment to provide performance security. These factors will be combined into a weighted technical and commercial score to determine the successful bidders.
The distribution of the blocks highlights the Federal Government’s plan to encourage investment beyond the traditional producing areas in the Niger Delta while supporting exploration activities in frontier basins with hydrocarbon potential.
The commission said it will assess commercial bids using the signature bonus, work program commitments, and performance security commitments. These elements will form the overall technical and commercial score used to rank and select the winning companies.
According to the commission, only companies that passed the prequalification process progressed to the technical and commercial bidding stages. The licensing round was launched under the provisions of the Petroleum Industry Act, 2021.
NUPRC later introduced an online bid portal to allow interested companies to register and participate in the exercise. It also organized a pre-bid conference to explain the bidding guidelines and procedures to registered companies and other stakeholders.
A total of 286 companies submitted applications during the prequalification stage. After completing its review, the commission approved 196 companies to move forward to the technical and commercial bidding phase.
Out of the prequalified companies, 143 submitted a combined total of 200 bids for the available blocks. These companies are participating in the commercial bid conference.
The number of bids submitted shows that several companies applied for more than one block, reflecting the level of interest in the licensing round.
The commercial bid conference will allow the commission to review and compare the financial offers and technical commitments made by the qualified companies.
The exercise will also assess the commitment of investors by considering not only the signature bonus but also the proposed work programs and financial guarantees needed to develop the assets.
The licensing round forms part of the Federal Government’s broader efforts to increase crude oil and natural gas production, attract new investment into the upstream sector, and develop petroleum assets that have remained underexplored.
Nigeria has faced challenges in attracting investment into oil and gas exploration and production because of regulatory concerns, insecurity, aging infrastructure, project delays, and high operating costs.
NUPRC maintains that reforms introduced under the Petroleum Industry Act, together with improvements in the regulatory environment, are creating a more stable and predictable investment framework.
The commission also aims to increase production to strengthen government revenue, improve energy security, and provide more feedstock for Nigeria’s growing domestic refining industry.
Industry stakeholders and investors are expected to closely monitor the outcome of the commercial bidding stage as an indicator of Nigeria’s ability to attract investment, expand exploration activities, and increase petroleum production.
The invitation of 143 companies to the commercial bid conference marks another milestone in the licensing process, which began with 286 applications and has narrowed to 200 bids for the 50 available blocks.
After the commercial bid conference and the remaining stages of the process, NUPRC will announce the successful bidders in line with the evaluation criteria and requirements governing the licensing round.
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source: https://punchng.com/
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