The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, has rolled out a plan to draw in $10bn in new investments and unlock as much as two billion barrels of crude oil through the newly launched Nigeria 2025 Petroleum Licensing Round.
At the launch in Abuja on Monday, NUPRC Chief Executive Gbenga Komolafe said the exercise covers 50 oil and gas blocks across onshore, shallow-water, frontier, and deepwater areas. He noted that the move is aimed at reversing falling exploration levels, increasing reserves, and boosting national output.
Komolafe highlighted that the round is an important step toward strengthening exploration and building long-term production. He added that the commission has posted detailed guidelines on its portal and adopted a two-stage process to support investor confidence and fairness, as required by Section 73 of the Petroleum Industry Act 2021.
He announced, “The Nigerian Upstream Petroleum Regulatory Commission is pleased to begin the Nigeria 2025 licensing round and launch the online portal.”
He stressed that transparency is central to the 2025 round, which will run for six months. The new round builds on the 2024 process, which introduced digital systems and better data access to speed up applications.
The process starts with a qualification stage where applicants must submit full documentation for review. Only shortlisted companies will proceed to the bid stage, where they will sign confidentiality agreements and file technical and commercial proposals.
Winners will be selected during the commercial bid stage. The commission emphasized that a company’s age is not a barrier. Instead, assessments will focus on technical strength, professionalism, and financial capability.
Komolafe explained, “The qualification stage requires full submissions from interested parties or consortia. Only those judged qualified will move to the bid stage and sign a Confidentiality Agreement.”
“At the bid stage, shortlisted companies will file their technical and commercial bids according to the rules and guidelines. The process will be digital, and winners will be chosen at the commercial bid round.”
Starting immediately, the commission has published the Licensing Round Guidelines, Asset Teasers, Activity Schedule, Maps, and related documents on the portal.
Komolafe defended the recent licensing rounds, saying the 2024 exercise achieved strong results and that all awardees have met their obligations and begun various exploration and development activities.
“Finishing a licensing round last year does not mean awardees should already be producing,” he said. “Exploration takes time. But progress has been made across all awarded assets.”
He added that drilling and field activity are already increasing nationwide, driven by investor commitment and renewed interest in Nigeria’s basins.
“Our monthly data shows a steady rise in rig count. Those rigs are working and will support a rise in production,” he noted.
Komolafe recalled that the 2022 Mini-Bid Round and the 2024 Licensing Round were carried out with high levels of transparency, strong global participation, and active investor engagement.
He said the 2024 round was particularly notable, as it received commendation from NEITI and other stakeholders and was completed without petitions or disputes.
He added that these outcomes show the commission has restored trust in the licensing process.
Commenting on planned roadshows in locations including Beijing, Komolafe said the Petroleum Industry Act requires the commission to grow reserves and production, which makes it necessary to promote Nigeria’s potential globally.
“The PIA does not restrict us to any region. We must reach investors with the financial and technical strength that may not be available locally,” he said.
He noted that with global shifts in energy and tighter capital, countries with hydrocarbons must increase efforts to attract investment or risk falling behind.
Responding to concerns about past situations where newly formed firms won blocks over long-standing companies, Komolafe said the commission has redesigned the guidelines to ensure only capable bidders secure assets.
He explained that the new rules prioritize technical ability, financial strength, and credible development plans instead of company age or high signature bonus pledges.
“Asset development depends on people, technology, and funding, not the date a company was registered,” he said. “A new company with strong capacity can deliver faster than an older one without it.”
He added that a bid guarantee requirement has now been introduced, requiring financial guarantees to ensure winners proceed with development. “This protects the country. If a winner fails to develop the block, they bear the loss, not Nigeria,” he said.
Komolafe also said the era of inflating signature bonuses to win licenses and then defaulting has ended. “Signature bonus is no longer a winning factor. The president has lowered the entry barrier to ensure only serious investors come forward,” he added.
Nigeria’s upstream sector has faced years of falling investment due to regulatory uncertainty, community unrest, global capital shifts, and pressure from the energy transition.
The Petroleum Industry Act, passed in 2021, aims to address these issues by setting clear processes and competitive fiscal terms and empowering a regulator to run regular licensing rounds that support reserve and production growth.
The 2025 Licensing Round, which will offer 50 blocks across different terrains, is part of ongoing efforts to rebuild investor confidence, grow local participation, and strengthen Nigeria’s position as a competitive investment destination.
source: punchng.com
African Energy Council