NUPRC plans oil blocks licensing round in 2025 as winners of 2024 exercise emerge

Nigerian Upstream Regulatory Commission, NUPRC, said plans have been concluded to hold a fresh oil bidding round in 2025. The Commission said the plan was targeted at attracting additional investments, increasing oil and gas reserves and the nation’s production capacity. The Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe, who disclosed this at the ongoing 2024 Licensing Round Commercial Bid Conference in Lagos, said: “I am pleased to announce that the NUPRC will launch another Licensing Round in 2025. Building on the lessons learned from this year’s round. “The 2025 exercise will focus on discovered but undeveloped fields (fallow assets) and prioritize natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals. This Licensing Round is more than a commercial exercise; it is a bold declaration that Nigeria is ready for business. It is an opportunity to unlock our hydrocarbon potential, increase production, attract new investors, and drive inclusive economic growth. Let us not miss this moment. Let us seize this opportunity to develop Nigeria’s oil and gas resources responsibly, sustainably, and inclusively. Together, we can chart a brighter, more prosperous future for Nigeria’s upstream petroleum sector.”
On the 2024 exercise, whose winners would emerge today, he said: “The 2024 Licensing Round, launched in May, represents a significant leap in our hydrocarbon development strategy. The licensing round offers twenty-four (24) carefully selected blocks spanning onshore, shallow water, and deep offshore terrains. Complementing these are the seven deep offshore blocks carried over from the 2022 Mini Bid Round, bringing the total to thirty-one (31) blocks. Together, these assets hold enormous potential for economic growth, energy security, and technological advancement. As we move forward, it is essential that we prioritize transparency, accountability, and decarbonisation measures in the management of our oil and gas sector. Accordingly, the Commission has reaffirmed its unwavering commitment to openness and transparency, in alignment with the principles of the Extractive Industry Transparency Initiative (EITI). The commercial bids, based on bid parameters prescribed and published on the Bid Portal, will be opened and processed through electronic bidding process. The bids will be conducted in the presence of representatives of the Nigerian Extractive Industry Transparent Initiative, the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources.
“This Licensing Round is designed with unique features to position the industry to achieve far-reaching benefits. With reduced signature bonuses and the recent Presidential Executive Orders on non-associated gas (NAG) development, optimized local content, and the reduction of contracting costs and timelines, we have fostered an enabling environment that strengthens Nigeria’s competitiveness in the global energy market.
“Drawing from the lessons learned during the MFBR 2020, where the allocation of blocks to multiple companies presented certain challenges, this round prioritizes single applicants or well-established consortia to ensure greater efficiency and accountability. This bid round has also been designed to foster collaboration between reputable local companies and their international counterparts, promoting local content development, creating employment opportunities, and facilitating technology transfer. Environmental and social considerations remain a top priority, and we will ensure that all exploration and production activities adhere to global best practices while promoting harmonious and peaceful coexistence between oil and gas companies and their host communities.” He said: “The nation was poised for aggressive exploration and development, adding that with the sector transformation driven by the Petroleum Industry Act, PIA and the Presidential Executive Orders, the NUPRC looks forward to the making of early Final Investment Decisions (FIDs) on projects.” According to him, the regulator also anticipate a significant uptick in exploration and development drilling, early first oil and gas production, across all terrains.
He said: “These milestones will undoubtedly drive economic growth, create jobs, strengthen energy security, and solidify Nigeria’s position as a prime investment destination in the global oil and gas industry. However, we are aware of the unique challenges the industry faces today — challenges we must address through collaboration, innovation, and a commitment to global best practices.” He added that while we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead. Declining production levels and fierce global competition demand strategic action. Interestingly, the PIA has given us a unique opportunity to transform the industry, attract investments, and position Nigeria as a formidable player in the global energy space.”