NUPRC awards 37 oil blocks to 31 companies
The NUPRC has named 31 companies as preferred winners of 37 oil and gas blocks under the 2025 Licensing Round, concluding an eight-month bidding process despite alleged threats against evaluation offi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has named 31 companies as preferred winners of 37 oil and gas blocks under the 2025 Licensing Round, concluding an eight-month bidding process despite alleged threats and intimidation against evaluation officials. NUPRC Chief Executive Oritsemeyiwa Eyesan said the commission resisted pressure and maintained a transparent, technology-driven process involving about 143 companies and 200 bids.
The successful bidders must meet post-award conditions, including payment of signature bonuses within 90 days, or risk losing the assets to reserve bidders. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the Petroleum Industry Act has eliminated discretionary allocation of oil blocks, ensuring fairness and transparency. He urged successful companies to develop the assets rather than hold licences for speculation. The government said the licensing round is aimed at attracting investment, boosting exploration and increasing Nigeria’s oil and gas production.
The licensing round is the most significant in Nigeria’s recent history. The government is seeking to attract investment into the oil and gas sector, which has struggled with underinvestment and declining production. The bidding round covers blocks in both mature and frontier basins, offering opportunities for both established and new players.
The alleged threats against evaluation officials, however, raise questions about the integrity of the process. While the NUPRC insists the process was transparent, the intimidation allegations suggest that powerful interests were not happy with the outcome. The government must ensure that the winning companies are able to develop the blocks without interference.
This echoes the 2005 licensing round, which also attracted significant interest. The mechanism then was different, but the result was the same: a government seeking to attract investment into the oil and gas sector.
The winners: the 31 companies that won the blocks; and the Nigerian government, which gains revenue from the licensing fees. The losers: the companies that did not win bids; and the Nigerian public, which must hope that the investment translates into jobs and revenue.
Bottom Line: Thirty-seven oil blocks have been awarded to 31 companies. The licensing round is over. The question is whether the winners will develop the blocks or just hold them for speculation.