The federal government has successfully concluded its first oil bid round under the Petroleum Industry Act (PIA) 2021, with several indigenous oil and gas companies emerging as winners of Petroleum Prospecting Licences (PPLs).
These licenses grant them the rights to explore, develop, and produce hydrocarbons from both onshore and deep offshore oil blocks.
The landmark event, held during the 2022/2023 Mini Bid Round and the 2024 Licensing Round, witnessed strong participation from Nigerian companies such as TotalEnergies, Sifax, MRS, Applefield, FIRST E&P, and Sahara Deepwater.
Key winners included:
- Sifax & Royalgate Consortium: Sole bidder for PPL 300-DO.
- Ocean Gate Engineering Oil & Gas Limited: Secured PPL 302.
- Sifax Royalgate Consortium: Outbid Homeland Integrated Offshore Services Limited for PPL 304.
- MRS Oil and Gas Company Limited: Triumphed over NNPC Exploration and Production Limited for PPL 303.
- Hakilat Oil and Gas Consortium Limited: Bested NNPC Exploration and Production Limited for PPL 305.
- Biswal Oil and Gas Limited: Secured PPL 306 through competitive bidding.
2024 Licensing Round Victories
- The 2024 Licensing Round intensified competition across 24 blocks, with major victories including:
- Petroli Energy Marketing & Supply Limited: Secured PPL 269, defeating AFAGAF Company.
- Sahara Deepwater Resource Limited: Dominated with wins for PPL 270 and PPL 271.
- Panout Oil and Gas Limited: Emerged victorious in the hotly contested PPL 300/301-CS.
- TotalEnergies E&P Nigeria: Claimed PPL 2000/2001 after outbidding Star Deepwater & Petroleum Limited.
Uncontested Wins
Several companies pursued targeted strategies, securing key blocks without competition. These include:
- Biswal Oil and Gas Limited: PPL 2002.
- First Exploration and Petroleum Development Company Limited: PPL 2003.
- Additional sole wins were recorded by Dewayles International Limited, Applefield Oil and Gas Limited,
- R28 Holdings Limited, and Tulcan Energy Exploration and Production Company Limited across various blocks.
Read also: Sifax, Sahara, TotalEnergies, others win in 2004 oil bid round
Strategic Milestones
Gbenga Komolafe, NUPRC’s commission chief executive, emphasised the rounds’ role in unlocking Nigeria’s energy potential and boosting economic growth.
Komolafe said the 2025 exercise would focus on unexplored assets.
“While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead. Declined production levels and failed global competition demand strategic action. Interestingly, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investments and position Nigeria as a forefronter.
“To this end, I am pleased to announce that the NUPRC will launch another licensing round in the year 2025. Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets and prioritise natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals,” he announced.
Explaining further, Komolafe said the regulator’s commitment has been to restore investors’ confidence in the industry, saying that it has done so diligently by ensuring that its activities are in alignment with the provisions of the Petroleum Industry Act.
“What we are doing here today is not a matter of discretion by the commission or the statutory provisions of the Petroleum Industry Act. The statutory provisions of the Petroleum Industry Act provide that the commission should conduct licensing rounds.