TotalEnergies, MRS, and Others Emerge as Winners in 2024 Oil Licensing Bid

TotalEnergies and MRS Oil & Gas are among the companies that have emerged as winners in the 2024 oil licensing round. The results were announced on Wednesday, December 18, at the licensing round commercial bid conference held in Lagos.

The detailed results are as follows:

• OceanGate Engineering Oil and Gas Ltd won PPL 302-DO and PPL 3007.
• SIFAX & OceanGate secured PPL 300-DO.
• BISWAL Oil & Gas Ltd defeated NNPC E&P to win PPL 306-DO.
• Homeland Integrated emerged victorious in PPL 304-DO.
• Hakilat Oil & Gas Consortium Ltd also outbid NNPC E&P to clinch PPL 305-DO.

This publication understands that there was initially a tie between MRS Oil & Gas and NNPC E&P. However, MRS ultimately emerged as the winner of PPL 303-DO.

Furthermore:

• Petroli Energy Marketing and Supply Ltd won PPL 269.
• Sahara Deepwater Resources Ltd secured both PPL 270 and PPL 271.
• Panout Oil & Gas claimed PPL 3015, defeating TotalEnergies and three other bidders to win PPL 300/301CS.
• TotalEnergies E&P won PPL 2000/2001.

Solo Bidder Winners
Several companies emerged as solo bidders in specific categories:

• BISWAL Oil & Gas Ltd won PPL 2002.
• First E&P secured PPL 2003 and PPL 2006.
• Deywayles International Limited claimed PPL 2004.
• Applefield Oil & Gas Ltd won PPL 2005 and PPL 3017.
• R28 Holdings Ltd won PPL 2007 and PPL 3011.
• Tulcan Energy E&P secured PPL 2008 and PPL 3012.
• Broron Energy claimed PPL 2009.
• Hakilat Oil & Gas Ltd won PPL 3016.

Future Licensing Rounds and Reforms

Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed plans for another oil licensing bid round in 2025. He explained that the licensing rounds have now become an annual exercise to boost oil production, with the next round focusing on unexplored and idle assets.

“While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead. Declining production levels and global competition demand strategic action. The Petroleum Industry Act (PIA) offers us a unique opportunity to transform the industry, attract investments, and position Nigeria as a leader in the global energy market,” Komolafe stated.

He emphasised the Commission’s commitment to aligning its activities with the PIA and regaining investor confidence.

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“The PIA mandates the Commission to conduct licensing rounds. Although the Act does not require annual rounds, we are adopting this strategy to grow, preserve, and optimise Nigeria’s hydrocarbon resources. Following the success of the 2024 exercise, we will commence preparations for the 2025 round, which will focus on undeveloped fields, fallow assets, and natural gas development to support Nigeria’s UN Sustainable Development Goals,” he explained.

Komolafe also highlighted the activation of the “drill or drop” provisions of the PIA, which allow the Commission to recover idle assets for reallocation.

“There is a provision in the PIA that speaks to ‘drill or drop.’ This ensures that unexplored areas and resources are reclaimed. We have started engaging with industry stakeholders to ensure these assets are not wasted. By harvesting idle assets and reallocating them through bidding, we aim to ensure that our resources are fully utilised,” he concluded.