As the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) prepares to launch its 2026 Oil Licensing Round in the third quarter of the year, oil and gas expert, Dr. Leesi Gabriel Gborogbosi, has urged prospective bidders to adopt a disciplined, long-term approach to investment and risk management.

NUPRC recently announced that the 2026 exercise would commence after the completion of the 2025 licensing round, citing renewed investor confidence in Nigeria’s upstream petroleum sector.

Dr. Gborogbosi, Managing Director of Kalenoor Energy Limited, Chief Executive Officer of Gabriel Domale Consulting and former Shell Nigeria Project Finance Manager, said investors must view licensing as a comprehensive investment programme rather than merely acquiring oil assets.

He advised prospective bidders to familiarise themselves with the Petroleum Industry Act 2021, the Nigeria Tax Act 2025, licensing guidelines and the commercial realities of the upstream sector before committing capital.

He contended that the licensing process spans registration, pre-qualification, data acquisition, technical submissions, evaluations and commercial negotiations, with each stage carrying significant financial implications.

Recalling his nearly three decades of industry experience, Gborogbosi cautioned that many marginal and brownfield assets come with technical, historical and host community challenges, including the need for costly infrastructure rehabilitation and immediate social investment.

He urged investors to understand the reasons behind previous operators’ divestments and factor such risks into their investment decisions to ensure efficient operations and sustained production.

On financing, he stressed that bidders should consider the full cost of participation, including pre-licence search expenses, signature bonuses and long-term operational costs.

“A successful bid is not determined solely by the acquisition cost but by the ability to sustain profitable operations,” he said.

He advocated diversified funding options beyond conventional bank loans, including equity financing, farm-ins, technical partnerships, vendor financing, drilling-for-equity arrangements, reserves-based lending and gas-to-power financing models.

Gborogbosi also emphasised the importance of early engagement with host communities and robust front-end planning covering project execution, regulatory compliance, community relations and performance monitoring.

He added that investment proposals should clearly demonstrate how projects would contribute to reserves growth, energy security, local content development, job creation and increased government revenue.

Gborogbosi advised bidders to seek expert guidance, build sustainable partnerships and approach the 2026 licensing round with a long-term value creation strategy. (The Nation)