Expert Urges Disciplined Approach for 2026 Oil Licensing

Leesi Gabriel Gborogbosi, the Managing Director of Kalenoor Energy Limited, has advised prospective bidders for the 2026 oil licensing round organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to embrace a disciplined, long-term investment approach. This advice follows the announcement that the bidding process will commence in the third quarter of 2023, after the completion of the 2025 licensing round.

Gborogbosi emphasized the importance of understanding the full landscape of the petroleum industry, including the Petroleum Industry Act of 2021 and the 2025 licensing guidelines. He cautioned bidders to consider the financial implications of their investments, including the costs associated with pre-licensing searches and the need for a robust front-end plan that includes community engagement.

Gborogbosi also recommended diversifying financing options beyond bank debt to include equity and vendor financing, highlighting the necessity of sustainable operations and community relations to avoid prolonged dormancy of assets.