On Wednesday, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed new participation criteria for the 2025 licensing round, constraining each bidder to a maximum of two oil and gas blocks. The initiative aims to pivot attention from speculative endeavors to those operators who exhibit substantial technical and financial prowess.
During a pre-bid webinar for the 2025 licensing round, the NUPRC explained that the revised structure intends to enhance developmental results, speed up production, and align Nigeria’s upstream operations with international standards.
According to the new regulations, emphasis will be placed on bidders who can competently demonstrate their operational capabilities and financial means to support exploration and development activities up to the initial oil or gas production.
The NUPRC highlighted that the previous practice of holding onto assets without proper work programmes or funding strategies is now obsolete. Selection for block allocations would henceforth prioritize entities that can genuinely contribute value to the sector and the economy, rather than merely aggressive bidding strategies.
At the webinar, Oritsemeyiwa Eyesan, the Commission’s Chief Executive, asserted that only bidders with robust technical and financial qualifications would advance to the pivotal stage of the bidding procedure covering the 50 available blocks.
She explained, “The process consists of five phases: registration and pre- qualification, data acquisition, submission of technical bids, evaluation, and a commercial bid conference. Only candidates showcasing strong technical and fiscal credentials, professionalism, and credible proposals will progress. Winners will be determined through a transparent, merit-based process.”
With President Bola Tinubu's endorsement, the NUPRC has adjusted the signature bonuses for the 2025 licensing round to a range that lowers entry barriers while emphasizing essential attributes such as technical expertise, solid work programs, and financial capability to facilitate rapid production.
Eyesan characterized the licensing round as a summons for dedicated partners looking to invest resources, apply technical excellence, and expedite the transition from license allocation to exploration, appraisal, and full production.
She reiterated the commission’s dedication to maintaining transparency throughout the licensing round, emphasizing that Nigeria is poised to attract investment and technological advancements in hydrocarbon recovery.
“Fifty oil and gas blocks are now available in this licensing round, giving investors access to Nigeria’s vital basins and the opportunity to generate long-term value,” she added.
Eyesan further ensured that the bidding procedure would adhere to the Petroleum Industry Act (PIA), promote the efficient use of digital tools for data accessibility, and remain open to oversight from the Nigeria Extractive Industries Transparency Initiative (NEITI) and other regulatory bodies.
“This licensing round represents more than just a bidding activity; it signals a re-envisioned upstream sector rooted in the rule of law, data-driven, aligned with global investment standards, and aimed at fostering long-term value creation,” the NUPRC head stressed.
During the webinar, NUPRC experts elaborated on the guidelines, model contracts, bid parameters, and evaluation criteria to aid investors in navigating uncertainties within a framework designed to ensure predictability and build confidence.
Additionally, Augustine Okwah, Head of the Alternative Dispute Resolution Centre at NUPRC, affirmed that any successful bidder must adhere to the requirement of making payment within 60 days of receiving the offer.
He further elaborated that bidders are limited to two oil and gas blocks, stating that any submissions beyond this limit would be disregarded by the commission.
“The offer letter will outline conditions that the winning bidder must fulfill before the license’s issuance by the minister. These conditions will include payment of the signature bonus within 60 days and a commitment guarantee for work,” he explained.
“Bidders must also provide a performance bond to guarantee compliance with work obligations and evidence of payment for the first year’s rent. Should a winning bidder fall short in meeting these conditions within 90 days, the commission will then consider the next reserve bidder, resulting in the previous offer becoming void,” he continued.
He also noted that if a winning bidder operates under a concessional contract, the government holds the right to take a share of the asset at any time during its operational lifespan, with the NNPC representing the government’s stake.
“The general license conditions dictate the requirements that must be adhered to throughout the license period, and bidders are restricted to two blocks only; additional bids will not be considered,” he added.
Furthermore, he asserted that failure to meet obligations would result in the withdrawal of offers per the stipulations outlined in the PIA, with any revoked participation interests distributed among the remaining compliant members.
Dr. Amba Ndoma-Egba, the Deputy Director of Lease Administration, emphasized that key goals of the bid round are to guarantee energy sufficiency, enhance gas utilization, expand opportunities, and attract foreign investment.
“We have identified the Sokoto Basin, Chad Basin, Benue Trough, Bida Basin, Anambra Basin, Benin Basin, and the mature Niger Delta Basin. This Licensing Round will occur across five of the seven identified basins,” he noted.
He reaffirmed that the signature bonus will fall within the range of $3 million to $7 million, asserting that the commission retains the authority to determine the specific percentage of bonds associated with the work programme commitments.
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