The number of oil and gas blocks being offered to investors in the 2025 licensing round has dropped to 37 from its original 50 as the federal government noted that 13 of the assets are in frontier basins and were yet to be de-risked.
The licensing round at inception, attracted interest from around 300 companies across 50 available assets, however, after the prequalification process, and submission deadline, 143 companies had submitted 200 technical and commercial bids covering only 37 assets out of 50 assets offered by the government.
Speaking during the commercial bid conference in Abuja on Tuesday, Oritsemeyiwa Eyesan, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) explained that the government will go back and do some more work to de-risk these assets and bring them back to the market.
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“So when we launched the bid, we were very transparent and open and explained that some of these assets are in Frontier basins. Frontier means that they have not yet been de-risked and so we were not surprised when we saw that some of these assets returned with no bidders.
“What it therefore means is that we will go back and do some more work to de-risk these assets and bring them back to the market. I’m sure from the studies that we’ve been doing and the work that we need to do, these assets will come up and definitely be picked up.”
According to Eyesan, the assets available in the licensing round have potential to add about 500 million barrels to Nigeria’s reserves, increasing the nation’s existing reserves of crude oil and condensate—which currently stand at 37.01 billion barrels and 215.19 trillion cubic feet of gas.
She explained that, once successfully developed, these assets are expected to contribute a minimum of 300,000 barrels per day of crude oil and condensate production, over the next three years. This for her, represents a vital step for Nigeria in achieving its goal of reaching three million barrels per day by 2030.
“These projections represent more than additional barrels, they represent increased Government revenue, improved foreign-exchange earnings, greater utilisation of infrastructure, opportunities for indigenous service companies, employment creation, technology transfer and broader economic growth.
“Over the next three years, once successfully developed, these assets are expected to contribute a minimum of 300,000 barrels per day of crude oil and condensate production. This licensing round represents a vital step for Nigeria in achieving its goal of reaching three million barrels per day by 2030,” she said.
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Speaking further, the CCE, emphasized that each winning bidder must satisfy the post-bid conditions prescribed in the Guidelines, including the provision of the applicable guarantees, payment of the signature bonus and first-year rent, and execution of the relevant contractual documents.
She stressed that a winning bidder that fails to fulfil the prescribed conditions within 90 days of receiving its offer letter will lose its entitlement to the asset.
“The Commission may thereafter invite the reserve bidders, in their order of ranking, to fulfil the conditions of the award. The Government is not seeking speculative holders of acreage; it is seeking partners with the capacity, discipline and commitment to deliver measurable production and economic value.
“It is essential to highlight that the government will support new production from both small and large fields, aiming to broaden the range of participants and promote collaboration throughout the industry. Additionally, the commission prioritizes not only growth but also the production of “efficient barrels”—those that deliver value to all stakeholders, including the government,” she added.
In his remarks, Ekperikpe Ekpo, minister of state for Petroleum Resources (gas) said that the Nigerian government remain 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 explained that for gas sector in particular, the importance of this licensing round cannot be overstated as Nigeria pursues the objective of the decade of gas initiative.
For him, new upstream investments will provide the foundation for increasing gas reserves, expanding domestic gas supply, supporting industrialization, improving energy access, and strengthening Nigeria’s position in bidding as the supplier of energy globally and regionally.
“The Petroleum Industry Act, together with the administration’s ongoing policy and fiscal reforms, has significantly enhanced investor confidence by promoting regulatory certainty, transparency, and ease of doing business. Today’s exercise further demonstrates that Nigeria’s licensing regime is anchored on fairness, accountability, and international best practice.
“With one of the largest proven natural gas reserves in the world, abundant oil resources, a growing domestic market, and a reform-oriented government, Nigeria remains one of the most attractive investment destinations in the global energy market,” he said.
Also speaking at the event, Heineken Lokpobiri, Minister of Petroleum (Oil), reiterated that Nigeria, as of today, is one of the most attractive investment destinations in the world, given the current conflict between Iran and the U.S. which he said has made the available assets among the most valuable assets that you can think of anywhere in the world.
Also speaking at the event, Heineken Lokpobiri, Minister of State for Petroleum, said Nigeria is one of the most attractive investment destinations in the world given the current conflict in the Gulf region between Iran and the U.S.
He sated that the assets to be auctioned are among the most valuable assets that you can think of anywhere in the world because of Nigeria’s strategic location in the Gulf of Guinea.
“It’s also important for us to say that nobody knows the content of the commercial bid that you have bidded. And the PIA, I want to say unfortunately, has prevented discretionary allocation of oil blocks. I wish I was minister when the Petroleum Act was in operation.
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“I would have exercised my powers to discretionary allocate it to those I believe that have the requisite financial, technical capacity to be able to develop businesses. But I like what the PIA said, that these licences that will be issued today or that will be won today should not be trophies as it has been in the past.”
