The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has emphasized that the ongoing 2024 oil and gas licensing round represents a pivotal opportunity to expand Nigeria’s hydrocarbon reserves and enhance production, according to NUPRC Chief Executive Gbenga Komolafe.
Speaking at the Africa Oil Week Conference in Cape Town, Komolafe highlighted the licensing round as a key step in driving aggressive exploration, investment, and development across the nation’s upstream sector.
Komolafe underscored Nigeria’s vast crude oil and natural gas reserves, which account for over 30% and 33% of Africa’s total reserves, respectively.
He noted that the country’s active rig count had recently climbed to 38, up from less than 20, reflecting the growing momentum in oil exploration.
“The 2024 licensing round is an unprecedented opportunity to unlock Nigeria’s hydrocarbon potential, attract both domestic and international investors, and propel Africa towards economic prosperity,” Komolafe said.
The round is also designed to expand gas utilization and drive end-to-end development across the value chain, providing a unique platform for energy players to enter Nigeria’s oil and gas sector.
Komolafe also pointed to recent Executive Orders signed by President Bola Tinubu aimed at streamlining Nigeria’s oil and gas industry.
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These reforms focus on improving efficiency, reducing contracting costs and timelines, and promoting the Nigerian Oil and Gas Industry Content Development Act.
Komolafe said these measures are designed to remove local content bottlenecks and enhance Nigeria’s global competitiveness, increasing returns on oil and gas investments.
In line with the Petroleum Industry Act (PIA), Nigeria has introduced comprehensive regulatory reforms to modernize licensing processes and promote environmental sustainability.
“Our aim is to attract investments that will fuel growth and innovation in the oil and gas sector,” Komolafe added.
The licensing round also aligns with Nigeria’s commitment to transparency and the principles of the Extractive Industry Transparency Initiative (EITI).
Komolafe said the process balances commercial interests with global energy sustainability goals, including plans to reduce carbon emissions and eliminate gas flaring.
He acknowledged the importance of fossil fuels in the global energy mix, stressing that they will remain integral even beyond 2050, despite the energy transition.
“As Nigeria stands at a critical juncture in its energy history, this licensing round offers a clear roadmap for investment, fostering collaboration to meet both immediate economic needs and secure a sustainable energy future,” Komolafe concluded.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
