FG Lowers Entry Barriers In Latest Oil Round, 50 Blocks Up For Bidding

The Federal Government said it is lowering entry costs in the latest oil bid rounds to ensure transparency, boost output, and attract new investment.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), during a presentation to potential investors on Wednesday during the 2025 licensing round pre-bid webinar, said it had reduced the signature bonus for the round to between $3 million and $7 million.

The new bonus is down from $10 million in 2024 and way below the roughly $200 million required several years ago.

The regulator outlined the framework, evaluation criteria, and commercial terms guiding the bid process.

A total of 50 oil and gas blocks, including 15 onshore, 19 shallow-water assets, 15 frontier basins, and one deepwater block, are being offered in the delayed 2025 licensing round.

The offering aims to raise oil output to 2.7 million barrels per day by 2027 from the current output of 1.5 million bpd, to boost government revenues, reserves, and investment inflows.

The NUPRC also said the new range was to shift emphasis toward technical capability, credible work programmes, financial strength, and swift delivery of production.

Chevron said in December it would participate in the auction, and TotalEnergies also expressed interest.

NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, assured investors that the changes for the round, the first she will oversee since her appointment in December, will provide a stable and predictable regulatory environment.

“You are not navigating uncertainty, you are operating with a framework that is transparent, predictable, and deliberately designed to inspire confidence,” she said.

To improve transparency, NUPRC said the licensing round would be subject to oversight by its NEITI watchdog – part of the global Extractive Industries Transparency Initiative – and other government agencies.

The regulator added that the licensing process will be fully digital, with investors able to access data and submit bids through an online portal.

Eyesan said the licensing round should be viewed as a strategic intervention to grow reserves, improve production, and strengthen Nigeria’s energy security in a rapidly evolving global energy landscape.

“This upstream sector is serious business. It is for long-term investment, and it is an open invitation to partnership, transparency, and shared responsibility as we work together to shape the next phase of Nigeria’s upstream oil and gas industry,” she said.

According to her, the commission has adopted a strictly merit-based approach that places technical competence and financial capacity at the centre of the selection process.

“Only candidates with strong technical and financial credentials, professionalism, and credible plans will move forward. Winners will be chosen through a transparent, merit-based process that takes you from award to exploration, appraisal, and ultimately full production.

“In this licensing round, 50 oil and gas blocks across Nigeria are available, allowing investors to access the country’s key basins and create long-term value,” she said.

The CCE said the new structure places greater emphasis on technical capability, credible work programmes, and speed to production, rather than aggressive cash bids, as Nigeria competes for mobile global capital amid tightening energy security and supply.

“With the approval of His Excellency, President Bola Tinubu, signature bonuses for the 2025 licensing round are now set within a value range of $3m–$7m that reduces entry barriers and places greater weight on what truly matters, technical capability, credible work programmes, financial strength, and the ability to deliver production within the shortest possible time,” she said.

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According to her, the decision was informed by global capital mobility and the need to make Nigeria competitive in attracting serious, long-term upstream investors.

“This has been done deliberately to increase competitiveness and in response to capital mobility. The upstream sector is serious business. It is for long-term investment, and it is an open invitation to partnership, transparency, and shared responsibility,” Eyesan stated.

The NUPRC boss said the licensing round follows a five-stage process comprising registration and pre-qualification, data acquisition, technical bid submission, evaluation, and a commercial bid conference.

She stressed that the entire exercise would comply strictly with the Petroleum Industry Act 2021, with digital tools deployed to ensure transparency and public accountability.

“Let me emphasise clearly that the bid process will comply with the Petroleum Industry Act, promote the use of digital tools for smooth data access and remain open to public and institutional scrutiny through NEITI and other oversight agencies,” Eyesan said.

She added that all licensing materials had been uploaded on the commission’s portal since December 1, 2025, with dedicated support channels created to respond promptly to investor enquiries.

Eyesan reaffirmed that the entire process would comply fully with the PIA 2021, with extensive use of digital tools to ensure transparency and public scrutiny.

“The bid process will comply strictly with the PIA, promote the use of digital tools for smooth data access, and remain open to public, international, and institutional scrutiny through NEITI and other oversight agencies,” she said.

The NUPRC boss concluded that the 2025 licensing round represents a strategic signal to global investors that Nigeria’s upstream sector has been re-engineered for long-term value creation.

“Let me emphasise clearly that the Nigeria 2025 Licensing Round is not merely a bidding exercise. It is a clear signal of a re-imagined upstream sector, anchored on the rule of law, driven by data, aligned with global investment realities, and focused on long-term value creation,” Eyesan said.

In a technical presentation to participants, the Director of Lease Administration, Exploration and Acreage Management at NUPRC, Amber Ndoma-Egba, said the 2025 licensing round cuts across the Chad Basin, Benue Trough, Anambra Basin, Bida Basin, and the Niger Delta Basin.

He explained that the technical evaluation would focus on subsurface understanding, exploration work programmes, development concepts, sustainability, host community plans, and lifecycle management.

“We look at your understanding of the block, your subsurface evaluation, your exploration work programme, your development and production concept, sustainability, decarbonisation objectives, and host community development. Technically weak firms will not scale through this process.

“We have seven sedimentary basins in Nigeria. We have the Sokoto Basin, the Chad Basin. We have the Benin trough, Bida Basin, Anambra Basin, Benin Basin, and, of course, the mature Niger Delta Basin. This licensing round will take place across five of the seven sedimentary basins,” Ndoma-Egba said.

On commercial terms, Ndoma-Egba disclosed that the Commission, in a bid to support investment, had approved a minimum work performance security of one per cent, although bidders could voluntarily increase it to improve their technical score.

“The Commission Chief Executive, in the spirit of enablement and support for investment, has approved that the minimum work performance security should be one per cent. However, bidders may boost this if they want a higher weighting in their score,” he said.

He said bidders must clearly outline their exploration plans within the initial exploration period, three years for onshore assets and five years for deepwater and frontier blocks.

“We look at your understanding of the block, your subsurface evaluation, your exploration work programme, your development and production concept, evacuation and facilities planning, sustainability, decarbonisation objectives, and host community development

He also confirmed that final winners would emerge based on a weighted combination of technical and commercial scores, in line with the Petroleum Industry Act.

On December 1, 2025, the NUPRC announced the official commencement of the 2025 petroleum licensing round, targeting about $10 billion in new investments.