Nigeria Slashes Entry Costs in Aggressive Push to Attract Oil Investment
Nigeria has made a bold policy shift to revitalize its upstream petroleum sector, dramatically reducing entry costs for its 2025 Oil Licensing Round in a bid to attract capable investors to 50 oil and gas blocks currently on offer. The announcement came during a pre-bid conference in Lagos where the Nigerian Upstream Petroleum Regulatory Commission met with prospective bidders and major stakeholders in the oil and gas industry.
Chief Executive of NUPRC, Oritsemeyiwa Eyesan, revealed that President Bola Ahmed Tinubu has approved a revision of the signature bonus, previously considered prohibitively expensive. The commission has also adjusted several charges payable by bidders before first oil, marking a significant departure from previous licensing rounds that were criticized for their high barriers to entry. Eyesan emphasized that lessons from previous licensing rounds have informed the 2025 process, with a renewed focus on attracting technically competent operators rather than those seeking licenses as mere status symbols. She highlighted that the commission has made significant strides in recent years, largely due to the implementation of the Petroleum Industry Act, which includes provisions to recover fallow fields from operators who fail to develop them.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reinforced the government’s commitment to transparency and accountability, warning that licenses should not be treated as status symbols. He made it clear that operators would be given specific timeframes to develop their assets and that non-compliance would result in asset recovery. The minister also emphasized that the PIA does not provide for asset changes or refunds of bidding fees and signature bonuses.
On gas development, Eyesan noted that government incentives are beginning to deliver results, with several Final Investment Decisions reached that are expected to influence the ongoing bidding process. She expressed confidence that Nigeria is moving toward becoming the preferred investment destination, pointing to the astronomical increase in indigenous companies that have become producers.
Source: orientalnewsng.com
