Nigeria Returns 13 Oil Blocks After 196 Companies Qualify for Bidding

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that 196 companies are now qualified for the commercial bid stage of the 2025 oil licensing round. However, 13 out of the 50 oil blocks offered did not get any bids and will be returned to the government.

Oritsemeyiwa Eyesan, the Chief Executive of NUPRC, shared this information during her opening speech at the Commercial Bid Conference in Abuja on Tuesday. She mentioned that only 37 of the 50 blocks received bids during the technical evaluation stage, with 140 companies sending in a total of 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 pointed out that the licensing round attracted a mix of local and international companies, new players, and existing firms. She described the level of interest as a strong vote of confidence in Nigeria’s oil 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.

Mrs Eyesan explained that the exercise followed clear guidelines, with technical and commercial requirements published before the process. She said these criteria were further clarified during the pre-bid conference, webinars, and dedicated engagement channels.

She also mentioned that the Nigeria Extractive Industries Transparency Initiative (NEITI) observed both the bid opening and technical evaluation processes for more 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 stressed that the commission focused on technical skills and operational capacity rather than just high 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."

She explained that the evaluation looked at bidders’ technical skills, operational experience, organizational capacity, work plans, resource commitments, and their ability to complete projects on time.

Background

The NUPRC started the 2025 licensing round in November last year, with the process kicking off on December 1. A licensing round is how the government awards oil and gas exploration and production rights to qualified investors.

At that time, the commission noted that access to funds was one of the biggest challenges facing Nigeria’s oil sector. It also aimed to connect potential investors with financial partners.

The licensing round includes 50 oil and gas blocks in various areas, such as 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 applied for prequalification, with 196 qualifying for the technical and commercial bidding stages. Eventually, 143 companies submitted 200 bids.

Prospects

Mrs Eyesan noted that the available assets could add about 500 million barrels to Nigeria’s oil reserves and unlock an additional 300,000 barrels of oil production per day in 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 stated that the licensing round is key to Nigeria’s goal of raising crude oil production to three million barrels per day by 2030. She also wants to broaden participation across both small and large fields. According to her, the commission is focused on not just increasing production but also producing barrels that provide value to everyone involved, including the government.

Mrs Eyesan warned successful bidders not to treat license awards as mere trophies. She reminded them of the Petroleum Industry Act’s "drill or drop" provisions.

"The award should not be a trophy. It shouldn’t just be 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 said the commission would judge the success of the licensing round by how quickly awarded assets move from licensing to seismic acquisition, drilling, field development, and production.

Mrs Eyesan clarified that being the highest commercial bidder does not automatically mean a Petroleum Prospecting Licence (PPL). She explained that successful bidders must meet post-bid conditions like paying signature bonuses and first-year rents, providing guarantees, and signing contracts within 90 days.

"Today’s exercise does not constitute a final grant. Each winning bidder must satisfy the post-bid conditions set out in the guidelines. A winning bidder who fails to meet these conditions within 90 days will have their offer invalidated. The commission may then invite the reserve bidders in their order of ranking."

She also revealed that President Bola Tinubu has approved the start of the 2026 licensing round and urged unsuccessful bidders to keep in touch.

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

Mrs Eyesan called on investors to act quickly after the awards, saying Nigeria has created a clear and predictable environment for oil and gas investments.