Federal Government Commences 2024 Oil Bid Rounds
The Federal Government of Nigeria has officially announced the commencement of the 2024 oil bid rounds in alignment with the provisions of the Petroleum Industry Act (PIA). This significant announcement was made during the first edition of the NEITI House Dialogue, organized by the Nigerian Extractive Industries Transparency Initiative (NEITI), in Abuja.
Gbenga Komolafe, the Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), disclosed that the oil licensing rounds are designed to enhance the quality of data sets and will be conducted in a fair, transparent, and competitive bidding process, as mandated by Sections 3 and 74 of the PIA.
Komolafe stated, “It is my pleasure to announce to you that the 2024 licensing round as prescribed in the Petroleum Industry Act will commence from the end of this month and we will be going offshore to market it as part of our job.”
He further elaborated on the process, saying, “Our job equally entails marketing of the nation’s hydrocarbon resources to prospective investors. So we are going to do that, and the process has commenced. We’ve set very clear criteria to guide the implementation of the process from the beginning to the end transparently.”
Regarding the expected revenue from the bid rounds, Komolafe noted, “The assets that are being put on offer are mostly greenfield assets, so they are virgin assets and so to accurately quantify the amount to be generated might be difficult since they are greenfield assets.” However, he assured that the nation stands to earn billions of dollars from royalties, taxes, and other levies generated from the bid round.
He also provided insights into the bid process, stating, “We are currently putting on offer 12 blocks… right now we are completing that process and we are equally having 12 new bid rounds. So in totality we target to complete the 17 blocks and the ones on offer between now and early next year.”
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In addition, Komolafe addressed the issue of dormant oil blocks awarded in past bid rounds, stating that the commission would revoke the awards and conduct a review of these idle blocks in accordance with the provisions of the PIA.
Meanwhile, the NUPRC has witnessed significant revenue growth, with figures rising from N2 trillion in 2020 to N4.34 trillion in 2024. Komolafe attributed this growth to the commission’s transparent approach in revenue reporting.
In conclusion, Ogbonnaya Orji, the Executive Secretary of NEITI, highlighted the significance of the NEITI House Dialogue in fostering dialogue and accountability in Nigeria’s extractive industries, aiming to deepen government oversight and reforms in the sector while involving all stakeholders.
