NUPRC Plans Biannual Oil Licensing to Boost Production

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), under the leadership of Chief Executive Mrs Oritsemeyiwa Eyesan, is considering the adoption of biannual oil licensing rounds to enhance investment and increase Nigeria's crude oil production. In an interview with S&P Global, Eyesan stated that the commission aims to establish a predictable licensing cycle, with new assets being offered at least annually, and potentially twice a year.

This approach marks a shift from the previous regime, where bid rounds could span five to ten years. The NUPRC has already conducted several licensing exercises since the Petroleum Industry Act (PIA) was enacted in 2021, with plans for a new round expected to begin in early October, featuring 13 blocks not awarded previously.

The commission anticipates that awarded assets could contribute an additional 300,000 barrels per day (bpd) within three years, with future rounds targeting between 300,000 bpd and 600,000 bpd. The NUPRC is also focused on promoting indigenous operators in light of international oil companies withdrawing from Nigeria's onshore and shallow-water assets.