The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has declared that financial muscle alone would no longer determine who wins Nigeria’s oil and gas assets, insisting that only companies with proven technical competence and the capacity to rapidly develop fields would emerge successful in the country’s 2025 Licensing Round currently ongoing in Abuja.
The commission said the era when operators acquired oil blocks simply by offering the highest financial bids without the ability to develop them was over, stressing that the licensing regime under the Petroleum Industry Act (PIA) now prioritises long-term value creation over speculative acquisitions.
Speaking at the 2025 Commercial Bid Conference in Abuja, the Executive Commissioner, Corporate Services, NUPRC, Mrs. Oritsemeyiwa Eyesan, said the technical evaluation was deliberately designed to identify companies with the expertise, operational strength and financial capacity to transform assets into production.
She said: “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 to deliver this asset.”
Eyesan explained that the Commission carefully assessed each bidder’s technical competence, operational experience, organisational capacity, credibility of proposed work programmes, resource commitment and ability to execute projects within stipulated timelines before proceeding to the commercial bid stage.
“The evaluation was rigorous, objective and effective. It was designed to place assets in the hands of bidders capable of delivering the best overall long-term value.”
The CCE dismissed speculation that commercial bids had been compromised before the opening, assuring participants that the process remained transparent from start to finish.
“Forget whatever you’ve been told; forget whatever you’ve heard. Nobody has seen anybody’s commercial bids, and we will demonstrate that today,” she said.
The Commission disclosed that although nearly 300 companies initially expressed interest in the 50 assets on offer, only 196 firms scaled the prequalification stage.
By the submission deadline, 143 companies eventually submitted 200 technical and commercial bids covering 37 assets.
According to Eyesan, the strong participation by both new entrants and established indigenous and international operators reflects growing investor confidence in Nigeria’s upstream petroleum sector following reforms introduced under the Petroleum Industry Act.
She explained that the assets on offer have the potential to add about 500 million barrels to Nigeria’s proven crude oil reserves and unlock an additional 300,000 barrels of oil production per day within the next three years.
“The assets available in this Licensing Round have potential to add about 500 million barrels to Nigeria’s reserves, increasing our existing reserves of crude oil and condensate which currently stand at 37.01 billion barrels and 215.19 trillion cubic feet of gas.
“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. 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.
“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.”
Eyesan, however, warned prospective winners against treating the licences as investment trophies.
Invoking the “drill or drop” provisions of the Petroleum Industry Act, she warned that companies that fail to commence development within three years risk losing their licences.
“The award should not be a trophy. It shouldn’t be just a medal of honour. Our expectation is that successful bidders will work these assets.
“The true measure of success for us will not be the number of winning bids announced today. It will be the speed at which the awards move from paper to seismic acquisition, from seismic to drilling, from drilling to development and ultimately to production.”
She also reminded bidders that Tuesday’s exercise did not amount to the final award of Petroleum Prospecting Licences, explaining that successful companies must still satisfy post-bid conditions, including payment of signature bonuses, provision of guarantees, payment of first-year rent and execution of contractual agreements within 90 days.
“A winning bidder that fails to fulfil the prescribed conditions within 90 days of receiving the offer will have it invalidated, and the Commission may thereafter invite reserve bidders in their order of ranking.”
Also speaking, Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, said the Petroleum Industry Act has effectively ended discretionary allocation of oil blocks.
“The PIA has prevented discretionary allocation of oil blocks. I like what the CCE said that these licences shouldn’t become trophies.”
Lokpobiri recalled how, in previous licensing rounds, some companies acquired oil blocks only to spend years searching unsuccessfully for technical and financial partners.
“In the past, I’ve seen people who go around conferences wearing the nicest suits looking for partners that never came. Partners will never come. Let the best win,” he said.
On his part, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the licensing round would play a critical role in driving Nigeria’s Decade of Gas initiative by attracting fresh upstream investments needed to expand gas reserves, increase domestic supply, support industrialisation and strengthen the country’s position in the global energy market.
He added that the Petroleum Industry Act and the Tinubu administration’s policy reforms had significantly improved regulatory certainty, transparency and investor confidence, making Nigeria one of Africa’s most attractive energy investment destinations.
