Komolafe- Ongoing Licencing Round Will Boost Nigeria’s Oil, Gas Reserves

In a recent interview, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Company (NUPRC), shed light on the promising impacts of Nigeria’s ongoing licensing round on the country’s oil and gas industry. During his address at the Oil Week Conference in Cape Town, South Africa, Komolafe emphasized that this initiative serves as a crucial opportunity to enhance Nigeria’s oil and gas reserves through heightened exploration and development activities.

Komolafe pointed out, “Currently, there are 38 active oil rigs in Nigeria, nearly double the number from just a few years ago when we were below 20.” He expressed optimism that the upcoming 2024 licensing round will not only tap into Nigeria’s extensive hydrocarbon resources but also attract significant investments that will drive economic growth across the African continent.

He highlighted that Nigeria possesses over 30% of Africa’s crude oil and condensate reserves and around 33% of its natural gas reserves, complemented by an array of renewable energy resources. “Our commitment is to foster an environment that encourages both domestic and international investors to engage with our upstream oil and gas sector,” he stated.

Komolafe also referred to recent Executive Orders signed by President Bola Tinubu, which are aimed at enhancing the efficiency and allure of Nigeria’s oil and gas landscape. These measures seek to incentivize development and simplify local content regulations, allowing oil and gas projects to move forward without unnecessary hurdles.

The Executive Orders focus on minimizing contracting costs and timelines, thereby enhancing Nigeria’s competitiveness globally and improving returns on investments in the oil and gas sector. “In line with the Petroleum Industry Act (PIA), we’ve rolled out comprehensive reforms aimed at modernizing our licensing processes, improving stakeholder engagement, and prioritizing environmental sustainability,” Komolafe explained.

Assuring stakeholders, he said, “This licensing round is set to be a landmark success for Nigeria. It will promote aggressive exploration and development, boost production, and expand gas utilization opportunities throughout the upstream value chain.”

Moreover, he reaffirmed Nigeria’s dedication to transparency in accordance with the principles of the Extractive Industry Transparency Initiative (EITI). “We are confident that this licensing round will benefit all stakeholders while contributing to long-term global energy security, aligning with wider energy sustainability goals,” he noted.

Addressing the need for a balance between technical and commercial considerations within the framework of net-zero carbon emissions, Komolafe reassured potential investors of Nigeria’s preparedness to adapt to the realities of the energy transition. “While we recognize the move towards renewable energy, it’s important to remember that fossil fuels will continue to play a crucial role in the global energy mix for the foreseeable future.”

He concluded with a call for collaboration among energy sector stakeholders: “The 2022/2024 licensing rounds present a pivotal opportunity for investment, with a clear strategy aimed at attracting both local and international players. Let’s unite our efforts to harness these opportunities, not only to address our economies’ immediate needs but also to ensure a sustainable future for generations to come.”