The Nigerian government has outlined new conditions for applicants in the 2025 oil licensing bid for oil blocks in the country.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the agency responsible for regulating upstream activities, announced on Tuesday that applicants must commit to low-carbon emissions obligations as a prerequisite for obtaining a license.
NUPRC CEO, Gbenga Komolafe, also stated that bidders for oil blocks must demonstrate a commitment to renewable energy programs as part of the bidding criteria. According to Komolafe, the policy aligns with Nigeria’s goal of achieving net-zero carbon emissions by 2060.
To provide further clarity on the criteria and conditions, the agency issued a template known as the Upstream Petroleum Decarbonisation Template (UPDT) to guide applicants.
“By this, the commission is deepening its efforts to align the upstream petroleum industry with national priorities and international climate goals while ensuring sustainable value creation from oil and gas resources for Nigeria’s energy security and economic development,” Komolafe said.
The new requirements will also mandate operators to implement methane management programs, such as leak detection and repairs, optimize operations with energy-efficient technologies, and integrate renewable energy sources into their projects.
Komolafe added that enforcement of these requirements will begin on January 1, 2025, covering all upstream sector approvals, including divestments.
Nigeria’s oil and gas sector has faced challenges, including low production levels, underinvestment, and crude oil theft.
The country has struggled to meet its OPEC production quota of 1.5 million barrels per day and has fallen short of its budgetary projection of 2 million barrels per day, forcing reliance on alternative revenue sources to meet budgetary needs.
In December 2024, the NUPRC announced plans to explore undeveloped regions for oil licensing to boost production and attract investment in the sector.
Komolafe added that the next bid would take place in February 2025, just a few months away.
