NUPRC Plans Biannual Licensing Rounds to Boost Oil Output

The Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, announced plans for biannual licensing bid rounds to stimulate activity in Nigeria's oil sector. The initiative aims to make more assets available and encourage the turnover of abandoned concessions.

NUPRC intends to conduct at least one bid round annually, with a turnaround time of six to seven months for future iterations. The last bid round, held last month, covered the Niger Delta region, Benin, Anambra, and Chad Basins, with expectations to increase oil production by 300,000 barrels per day (b/d) within the first three years.

The target for subsequent rounds is between 300,000 to 600,000 b/d. The next auction is anticipated by early October, featuring new acreage, including 13 unlicensed blocks from the previous round.

The focus will be on viable assets, with new "drill-or-drop" provisions aimed at preventing passive ownership that has hindered sector productivity.