The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that 196 companies have successfully navigated the prequalification stage and are set to proceed to the commercial bid stage of the 2025 oil licensing round. Concurrently, 13 of the 50 oil blocks initially offered failed to attract sufficient interest and will be returned to the government’s licensing inventory.
Oritsemeyiwa Eyesan, Chief Executive of NUPRC, revealed these figures during her opening remarks at the Commercial Bid Conference in Abuja. She detailed that only 37 of the 50 blocks received bids during the technical evaluation phase, with 140 companies submitting a total of 196 bids. This outcome signifies a robust interest in Nigeria’s upstream petroleum sector, attracting a diverse array of indigenous operators, international corporations, new entrants, and established players.
The licensing round, which commenced in November of the previous year with applications taking effect from December 1st, was designed to award oil and gas exploration and production rights through a competitive process. The NUPRC underscored that the exercise was governed by clearly defined guidelines, with technical and commercial requirements, along with evaluation criteria, published in advance and further clarified through various engagement channels. Transparency was further bolstered by the presence of representatives from the Nigeria Extractive Industries Transparency Initiative (NEITI), who observed both the bid opening and technical evaluation processes.
Mrs. Eyesan emphasised that the NUPRC prioritised technical competence and operational capacity over aggressive financial bids, stating, “It wasn’t, and it isn’t, going to be just about your ability to be the highest bidder. We want to ensure that you have the right capabilities to deliver the asset, in addition to having the financial resources.” The evaluation criteria encompassed bidders’ technical competence, operational experience, organisational capacity, work programmes, resource commitments, and their ability to execute projects within proposed timelines.
The assets on offer hold significant potential, with projections indicating an addition of approximately 500 million barrels to Nigeria’s crude oil reserves and the unlocking of an additional 300,000 barrels of oil per day within the next three years. This initiative is central to Nigeria’s ambition of increasing crude oil production to three million barrels per day by 2030. Successful bidders were cautioned against treating licence awards as mere ceremonial victories, with Mrs. Eyesan reminding them of the Petroleum Industry Act’s “drill or drop” provisions, warning that assets not actively developed within three years would be reclaimed.
Furthermore, President Bola Tinubu has approved the commencement of the 2026 licensing round, offering continued opportunities for investors. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted the government’s commitment to creating an enabling environment for investment and accelerating exploration and production, particularly noting the significance of the gas component in advancing the Decade of Gas Initiative. Despite the positive outlook, environmental concerns persist in oil-producing communities.
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