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2024 Licensing Round: Nigeria Set To Push Oil Reserves To 40Billion Barrels

The Federal Government has expressed the hope that the planned 2024 oil licencing round would help the country realize its 40 billion barrels reserve target.

The government in a move to scale up the reserve base has announced plans to host a new round of oil licensing in 2024. This initiative is aimed at attracting fresh investors and increasing investments, with a vision to push the current oil reserves from 37 billion barrels to a target of 40 billion barrels.

The strategy for the licensing round is in-line with Section 73 of the Petroleum Industry Act (PIA).

The PIA emphasizes on escalating investment, restructuring, as well as ensuring transparency and accountability within the industry.

Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed these plans, stating that future licensing will follow a Licensing Round Plan and implement modern acreage licensing practices.

This strategic move is designed to achieve multiple objectives such as generating funds, escalating exploration and production, enhancing bilateral relationships, fostering indigenous participation, and monetizing gas resources.

The NUPRC also expressed its intent to bring down the cost of oil production from $25-40 per barrel to less than $20 per barrel.

This will be complemented by optimizing oil monitoring through automation and facilitating ease of doing business.

Despite current challenges, the NUPRC plans to increase oil output to 1.8 million barrels per day (bpd).

The commission is also cognizant of the need to address climate change; it plans to implement measures based on a seven-pillar framework and adhere to greenhouse gas (GHG) reporting and environmental, social, and governance (ESG) measures.

To protect Nigeria from market volatility, the NUPRC has established an Oil and Gas Pricing and Value Monitoring Desk to analyze market trends.

SOURCE: Oriental News Nigeria