Nigeria to Boost Oil Production with Regular Licensing Rounds
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is planning to hold oil bid licensing rounds annually or biannually to increase crude oil production in the country. According to Oritsemeyiwa Eyesan, the Commission Chief Executive, this move aims to make more assets available to the market and encourage new activity by discouraging inactive concessions.
The goal is to resuscitate Nigeria's oil output through regular bid rounds, with a target of 300,000-600,000 barrels per day (b/d) from successive rounds. The Commission hopes that this will lead to an increase in productivity in the sector and boost production by 300,000 b/d in the first three years.
The next round of auctioning is expected to take place by early October at the latest, with new acreage including unlicensed blocks returning to the market. The focus will be on bringing viable assets to market, with a stricter approach than before. New entrants and 'drill-or-drop' policies are also being implemented to prevent passive ownership.