2025 Licensing: NUPRC Restricts Bidders to 2 Oil Blocks, Prioritises Technical, Financial Capacity

• Says signature bonus of $3m to $7m must be paid within 60 days of offer

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday unveiled strict participation rules for the 2025 licensing round, limiting each bidder to a maximum of two oil and gas blocks, and shifting focus from speculative acquisitions to operators with proven technical depth and financial strength.

The regulator which stated these at the 2025 licensing round pre-bid webinar said the new framework is designed to deepen development outcomes, accelerate production and align Nigeria’s upstream sector with global best practice.

Under the guidelines, the commission said priority would be given to bidders that can clearly demonstrate the technical competence to operate the assets and the financial capacity to fund exploration and development activities through to first oil or gas.

According to the NUPRC, the era of warehousing assets without clear work programmes or funding plans is over, noting that block allocation would no longer be driven solely by aggressive bidding but by the ability to deliver value to the industry and the economy.

Speaking at the virtual event, the Commission’s Chief Executive, Oritsemeyiwa Eyesan, maintained that only applicants with strong technical and financial credentials will proceed to the critical stage of the bidding process for the 50 blocks.

“The process follows five steps: registration and pre-qualification, data acquisition, technical bid submission, evaluation, and a commercial bid conference. Only candidates with strong technical and financial credentials, professionalism, and credible plans move forward. Winners are chosen through a transparent, merit-based procedure,” she reiterated.

The NUPRC chief executive noted that with the approval of President Bola Tinubu, signature bonuses for the 2025 licensing round are now set within a value range 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.

The commission also set firm financial conditions for successful bidders, directing that signature bonuses must be paid within 60 days of the issuance of the offer letter, failing which the award would lapse. It added that one-off payments for the blocks have been pegged between $3 million and $7 million, depending on asset classification, as part of efforts to balance investor entry costs with the need to secure serious commitments.

“This has been done to increase competitiveness and in response to capital mobility,” the NUPRC chief executive stated.

Eyesan described the licensing round as an open call for committed partners; those ready to invest capital, bring technical excellence, and accelerate Nigeria’s assets from license award to exploration, appraisal, and ultimately, full production.

She restated the commission’s commitment to a transparent licensing round, insisting that Nigeria is “ready to be the beautiful bride to capital and playroom for advanced technological deployment for hydrocarbon recovery.”

She added: “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.”

Eyesan further assured the public that the bid process will comply with the Petroleum Industry Act (PIA), promote the use of digital tools for smooth data access and remain open to public and institutional scrutiny through the Nigeria Extractive Industries Transparency Initiative (NEITI) and other oversight agencies.

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

During the webinar, subject matter experts from the NUPRC explained the guidelines, model contracts, bid parameters, and evaluation criteria in order to help investors navigate uncertainty and operate within a framework that is transparent, predictable, and deliberately designed to inspire confidence.

In his presentation, the Head of the Alternative Dispute Resolution Centre (ADRC) of the  NUPRC, Mr. Augustine Okwah, stated that as part of the guidelines, any bidder who is given an offer must make payment within 60 days.

Besides, he explained that bidders will be restricted to only two oil and gas blocks, explaining that anything above that will not be considered by the commission.

“The offer letter will stipulate the conditions precedent the winning bidder needs to fulfil before the issuance of the license by the minister. The condition precedent will include payment of the signature bonus within 60 days from the issuance of the offer letter. It will include your work commitment guarantee.

“And then you are required to submit a performance bond that will guarantee that work obligation. And of course you are required equally to show evidence of payment of your rent from the first one year. If the winning bidder is unable to fulfil this condition precedent within these 90 days, upon the expiration of the 90 days, without recourse to the winning bidder, the commission will then invite the reserve bidder to fulfil these conditions and it means the offer made to the winning bidder lapses,” he stated.

Significantly, he explained that if a winning bidder operates on a concessional contract arrangement, it means the government has a right to barge into that asset at any time during the lifespan of the asset up to 60 per cent, which will be held by the NNPC on behalf of the government.

“The general license condition speaks to general times and conditions of the license that you are required to adhere to during the pendency of the license and of course the bid is for a maximum of two blocks. If you bid for any blocks exceeding these two blocks, those additional submissions will not be evaluated,” he explained.

According to him, any winning bidder who fails to fulfil his obligations,  will have their offers revoked as prescribed under the (PIA), and the cancelled participating interest will be distributed amongst the other non-defaulting members.

Besides, in his submission, the Deputy Director, Lease Administration, Exploration and Acreage Management, Dr Amba Ndoma-Egba, noted that some of the objectives of the bid round include: ensuring energy sufficiency, boosting gas utilisation, expanding opportunities and attracting foreign investment.

“We have the Sokoto Basin, the Chad Basin, we have the Benue Trough, the 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 basins,’’ he stated.

He reiterated that the signature bonus will be around the range of $3 million and $7 million, emphasising that the commission has the prerogative to determine the percentage of the bond that will be given in respect of the work programme commitment.

“The CCE said in her speech, the signature bonus is within a range. We have a range which is between $3 million to $7 million and will be evaluated based on version 16 of the Petroleum Industry Act 2021. The Commission has the prerogative to determine the percentage of the bond that will be given in respect of the work programme commitment,” he stated.