Nigeria’s NUPRC Advances Oil Block Licensing with Rigorous Technical Screening
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced the technical screening of financially prequalified bidders in the 2024 oil block licensing bid round, marking a critical step in a process designed to enhance the country’s oil and gas production. The commission stated that the focus at this stage is on evaluating each bidder’s technical capability to operate one of the 31 oil blocks on offer.
With 26 blocks located in deep offshore waters, three on the continental shelf, and two onshore, this bid round includes 29 blocks in the Niger Delta and two in the Bida Basin. The NUPRC confirmed that pre-qualification was completed on July 7, with companies assessed for financial strength, technical competence, health and safety standards, and regulatory compliance. Notified companies have now progressed to the technical and commercial bid phase, which will continue until November 29.
“This round is currently in the Technical and Commercial Bid Phase, encompassing data access, purchase, evaluation, and preparation of bids for submission. Qualified companies will be notified by December 9, following a review of technical submissions, and will proceed to submit commercial bids,” the NUPRC said. Only those companies passing technical evaluations will join the final Commercial Bid Conference to conclude the process, with successful bidders securing licenses subject to ministerial approval.
The 2024 licensing round is part of the NUPRC’s effort to reinvigorate the Nigerian oil sector and attract both local and foreign investment. Since its inception in 2021, the commission has sought to optimize Nigeria’s hydrocarbon resources, which include an estimated 37.5 billion barrels of oil and 209.26 trillion cubic feet of natural gas.
High investor interest in this year’s licensing round led to the inclusion of an additional 17 deep offshore blocks, bringing the total to 36, though five were later removed due to ongoing litigation. The NUPRC emphasised that the assets offered are equipped with advanced technological features, including extensive 2D and 3D seismic data, which will allow bidders unprecedented insights into resource potential.
“The available assets feature cutting-edge 3D reprocessed pre-stack time migration technology, providing exceptional detail and clarity for prospective bidders,” the commission stated, highlighting its commitment to adopting global best practices to secure long-term investments in Nigeria’s energy sector.
