The NUPRC Chief Executive, Oritsemeyiwa Eyesan, disclosed this whilst delivering her opening remarks at the Commercial Bid Conference in Abuja on Tuesday. She stated that only 37 of the 50 blocks attracted bids during the technical evaluation stage, with 140 companies submitting 196 bids.

“At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning to the basket. We have a total of 140 participating companies showing interest through 196 bids,” Mrs Eyesan said.

She noted that the licensing round attracted a diverse mix of indigenous operators, international companies, new entrants, and existing players, describing the level of participation as a strong vote of confidence in Nigeria’s upstream petroleum sector.

“To reinforce trust, the commencement of this licensing round attracted interest from around 300 companies across 50 available assets. After the prequalification process, 196 applicants were deemed eligible to advance to the bidding stage. By the submission deadline, 143 companies had submitted 200 technical and commercial bids covering 37 assets,” she added.

According to Mrs Eyesan, the exercise was conducted under clearly defined guidelines, with technical and commercial requirements—as well as evaluation criteria—published ahead of the process and further clarified during the pre-bid conference, webinars, and dedicated engagement channels.

She added that representatives of the Nigeria Extractive Industries Transparency Initiative (NEITI) observed both the bid opening and technical evaluation processes to enhance transparency and credibility.

“The evaluation was rigorous. It was objective. It was simple. And it was to place assets in the hands of bidders capable of delivering the best overall long-term value,” she stated.

Mrs Eyesan emphasised that the commission prioritised technical competence and operational capacity over aggressive financial bids.

“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.”

According to her, the evaluation considered bidders’ technical competence, operational experience, organisational capacity, work programmes, resource commitments, and their ability to execute projects within proposed timelines.

Background

The NUPRC announced the commencement of the 2025 licensing round in November last year, with the exercise taking effect on 1 December. A licensing round is the competitive process through which the government awards oil and gas exploration and production rights to qualified investors.

At the time, the commission identified access to funding as one of the biggest challenges facing Nigeria’s upstream sector and stated its intention to connect prospective investors with financing partners.

The licensing round covers 50 oil and gas blocks across different terrains, including 16 onshore blocks in the Niger Delta, 18 shallow-water blocks, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.

On Monday, the regulator announced that 286 companies had submitted applications for prequalification, out of which 196 qualified for the technical and commercial bidding stages. It added that 143 companies eventually submitted 200 bids.

Prospects

Mrs Eyesan stated that the assets on offer have the potential to add about 500 million barrels to Nigeria’s crude oil reserves and unlock an additional 300,000 barrels of oil per day within the next three years.

“The assets available in the licensing round have the potential to add about 500 million barrels to Nigeria’s reserves. Today, our reserves stand at 37.01 billion barrels. We also expect that from this exercise, we will unlock about 300,000 barrels of oil production per day. We are looking at 37 assets that can come into production in the next three years.”

She said the licensing round is central to Nigeria’s ambition of increasing crude oil production to three million barrels per day by 2030, whilst broadening participation across both small and large fields. According to her, the commission is focused not only on increasing production but also on producing “efficient barrels”—those that deliver value to all stakeholders, including the government.

Mrs Eyesan warned successful bidders against treating licence awards as ceremonial victories, reminding them of the Petroleum Industry Act’s “drill or drop” provisions.

“The award should not be a trophy. It shouldn’t be just a medal of honour. We expect that you’re going to work these assets. If you do not do anything in three years, I’m sorry, we will come for those assets.”

She stated that the commission would measure the success of the licensing round by how quickly awarded assets progress from licensing to seismic acquisition, drilling, field development, and eventual production.

Mrs Eyesan clarified that emerging as the highest commercial bidder does not automatically confer a Petroleum Prospecting Licence (PPL). She explained that successful bidders must satisfy post-bid conditions, including the payment of signature bonuses and first-year rents, provision of guarantees, and execution of relevant contractual documents within 90 days.

“Today’s exercise does not constitute a final grant. Each winning bidder must satisfy the post-bid conditions prescribed in the guidelines. A winning bidder who fails to fulfil the prescribed conditions within 90 days of receiving this offer will have the offer invalidated. The commission may thereafter invite the reserve bidders in their order of ranking.”

She also disclosed that President Bola Tinubu has approved the commencement of the 2026 licensing round and encouraged unsuccessful bidders to remain engaged.

“His Excellency, President Bola Tinubu, has given the commission approval to commence the 2026 bid round. So all hope is not lost.”

Calling on investors to move quickly after the awards, Mrs Eyesan said Nigeria has created a transparent and predictable regulatory environment for upstream investments.

Minister seeks increased investment

Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the conference as a major milestone in Nigeria’s licensing process, stating that it reflects the government’s commitment to transparency, competitiveness, and credibility under the Petroleum Industry Act (PIA) 2021.

“The Federal Government, under the leadership of His Excellency, President Bola Ahmed Tinubu, remains firmly committed to creating an enabling environment that attracts investment, accelerates exploration and production, and unlocks the full value of Nigeria’s hydrocarbon resources,” he said.

Mr Ekpo noted that the gas component of the licensing round is particularly significant as Nigeria pursues the objectives of the Decade of Gas Initiative.

“New upstream investments will provide the foundation for increasing gas reserves, expanding domestic gas supply, supporting industrialisation, improving energy access, and strengthening our position as a leading supplier of natural gas to regional and global markets.”

He stated that the Petroleum Industry Act, alongside the administration’s fiscal and regulatory reforms, has significantly strengthened investor confidence by promoting regulatory certainty, transparency, and ease of doing business. The minister commended the NUPRC for conducting the licensing process in line with international best practices and urged investors to take advantage of Nigeria’s abundant oil and gas resources.

Despite the renewed investor interest, environmental concerns remain widespread across many oil-producing communities, where residents continue to grapple with oil spills, gas flaring, and other ecological challenges associated with hydrocarbon exploration.