Omon-Julius Onabu in Asaba
In the light of the imminent launch of 2026 Licencing Round by Nigerian Upstream Petroleum Regulatory Commission (NUPRC), oil and gas expert, Leesi Gabriel Gborogbosi, has advised that prospective bidders to embrace “a disciplined, long-term approach to investment and risk management”.
The advice came on the heels of the recent announcement by NUPRC that the 2026 bidding process would begin in the third quarter upon the completion of the 2025 round, a decision the commission described as “reflecting renewed investor confidence in Nigeria’s upstream sector”.
Gborogbosi, who is Managing Director, Kalenoor Energy Limited (an E&P oil and gas company), Chief Executive Officer of Gabriel Domale Consulting, and former Shell Nigeria Project Finance Manager, stated that investors must move beyond mere acquisition and treat licensing “as a complete investment programme”.
He said to understand the full landscape, bidders should study the Petroleum Industry Act 2021, Nigeria Tax Act 2025, licensing guidelines, as well as upstream commercial realities before committing their capital.
According to Gborogbosi, the exercise comprises a whole gamut that includes “registration, pre-qualification, data acquisition, technical submissions, evaluations, and commercial negotiations – each with distinct financial implications”.
He cautioned prospective bidders to watch out for what he termed “hidden asset risks.”.
Drawing from nearly three decades of experience in the industry, Gborogbosi warned that many marginal and brownfield assets often came with technical, historical, and community related challenges.
He said some of the challenges required major infrastructure rehabilitation while host communities often expected immediate social investment after years of inactivity.
He stated, “Investors should understand why previous operators divested and incorporate those factors into their investment decisions. The goal should be to operate assets efficiently, sustain production, and avoid prolonged dormancy.”
On cost and funding strategy, he said bidders must account for pre-licence, “search costs”, such as data, reports, and evaluations, many denominated in foreign exchange, alongside signature bonuses and life-cycle costs.
“A successful bid is not determined solely by the acquisition cost but by the ability to sustain profitable operations,” he asserted.
Gborogbosi recommended blended financing beyond bank debt, including equity, farm-ins, technical partnerships, vendor financing, drilling-for-equity, and reserves-based lending, adding that a gas-to-power and milestone-based financing can reduce risk and strengthen cash flow.
He called for early preparation, including community engagement, emphasising robust front-end planning covering execution, community relations, compliance, and performance monitoring. These, he said, should reflect in proposals as contributions to reserves growth, energy security, local content, jobs, and government revenue.
Against the backdrop of Gabriel Domale Consulting’s experience in providing advisory support systems for meticulous investors, Gborogbosi counselled bidders, “Understand the economics, secure expert advice, build sustainable partnerships, and approach licensing with a long-term value-creation mind-set.”