31 firms win 37 oil, gas blocks in 2025 licensing round

A total of thirty-one companies have emerged winners of 37 oil and gas blocks at the 2025 Licensing Round.

The bidding process, held at the Transcorp Event Center, attracted 143 companies, which submitted about 200 bids for 37 of the 50 oil and gas blocks offered by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

These blocks were drawn from diverse terrains including the Niger Delta Onshore (16), Niger Delta Shallow Water (18), Niger Delta Deep Offshore (1), Benin Basin Onshore (3), Anambra Basin Onshore (4), Chad Basin Onshore (4) and Benue Trough (4).

Of the 50 blocks on offer, 37 received bids while no bids were submitted for the remaining 13. The 37 blocks that attracted bids were drawn from all the terrains including the frontier basins like the Benue Trough, Chad Basin, Anambra Basin and the Benin Basin.

This is the first time in Nigeria’s energy history that frontier basins would attract such level of investor interest.

The companies that emerged winners of the 2025 Licensing Round include: SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), Gupsco Energy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).

Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903), Highban Resources Limited (PPL 700), and Eyre Energy Limited (PPL 801).

These firms will only be presented final awards after the payment of the appropriate signature bonus and the approval of the Minister of Petroleum Resources in line with the Petroleum Industry Act, 2021.

 …Background

The NUPRC had announced the commencement of the 2025 licensing round in November last year, with the exercise taking effect on 1 December.

A licensing round is the competitive process through which the government awards oil and gas exploration and production rights to qualified investors.

At the time, the Commission identified access to funding as one of the biggest challenges facing Nigeria’s upstream sector and stated its intention to connect prospective investors with financing partners.

On Monday, the regulator announced that 286 companies had submitted applications for prequalification, out of which 196 qualified for the technical and commercial bidding stages. It added that 143 companies eventually submitted 200 bids.

…Eyesan on prospects

The assets on offer in the Nigeria 2025 licensing round have the potential to add about 500 million barrels to the nation’s oil reserves, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has revealed.

Speaking on Tuesday at the Commercial Bid Conference themed “Expanding Opportunities: Right Play, Right Place, Right Time,“ Eyesan noted that Nigeria’s reserves currently stand at 37.01 billion barrels of crude oil and condensate and 215.19 trillion cubic feet of gas.

She added that once developed, the assets are expected to contribute a minimum of 300,000 barrels per day within three years, boosting the country’s target of reaching three million barrels per day by 2030.

The conference marked the conclusion of the technical and commercial bidding phase of the licensing round, where 143 companies submitted 200 bids covering 37 available assets.

The process, which began eight months ago under the directive of President Bola Ahmed Tinubu, initially attracted interest from nearly 300 companies across 50 assets before 196 applicants were shortlisted during prequalification.

“When I took office, my team and I made a clear pledge to carry out the Licensing Round according to the published schedule and to conclude both the technical and commercial bidding phase today, 21 July 2026. I am pleased to note that we have upheld this promise,” Eyesan said.

She noted that the Nigeria Extractive Industries Transparency Initiative (NEITI) observed the evaluation and bid-opening procedures to ensure integrity and independent scrutiny, emphasizing that the allocation of petroleum rights remains a matter of public trust.

Addressing evaluation metrics, the NUPRC boss stated that commercial scoring will consider signature bonuses, work programme commitments, and work programme performance security. Winning bids will be determined by the highest weighted aggregate score rather than the highest immediate payment.

Eyesan issued a stern warning to successful bidders, stressing that an award is “not a trophy to be held” but a strict commitment to invest, drill, develop, and produce.

“Our message is therefore clear: drill or drop,” she warned, explaining that winning bidders must meet post-bid conditions, including paying signature bonuses and first-year rent, and signing contractual documents within 90 days of receiving offer letters. Failure to comply will lead to reserve bidders being invited based on ranking.

“The Government is not seeking speculative holders of acreage; it is seeking partners with the capacity, discipline and commitment to deliver measurable production and economic value,” Eyesan added.

Mrs. Eyesan stated that the assets on offer have the potential to add about 500 million barrels to Nigeria’s crude oil reserves and unlock an additional 300,000 barrels of oil per day within the next three years.

“The assets available in the licensing round have the potential to add about 500 million barrels to Nigeria’s reserves. Today, our reserves stand at 37.01 billion barrels. We also expect that from this exercise, we will unlock about 300,000 barrels of oil production per day. We are looking at 37 assets that can come into production in the next three years.”

She said the licensing round is central to Nigeria’s ambition of increasing crude oil production to three million barrels per day by 2030, whilst broadening participation across both small and large fields. According to her, the commission is focused not only on increasing production but also on producing “efficient barrels”—those that deliver value to all stakeholders, including the government.

Mrs. Eyesan warned successful bidders against treating licence awards as ceremonial victories, reminding them of the Petroleum Industry Act’s “drill or drop” provisions.

“The award should not be a trophy. It shouldn’t be just a medal of honour. We expect that you’re going to work these assets. If you do not do anything in three years, I’m sorry, we will come for those assets.”

She stated that the commission would measure the success of the licensing round by how quickly awarded assets progress from licensing to seismic acquisition, drilling, field development, and eventual production.

Mrs Eyesan clarified that emerging as the highest commercial bidder does not automatically confer a Petroleum Prospecting Licence (PPL). She explained that successful bidders must satisfy post-bid conditions, including the payment of signature bonuses and first-year rents, provision of guarantees, and execution of relevant contractual documents within 90 days.

“Today’s exercise does not constitute a final grant. Each winning bidder must satisfy the post-bid conditions prescribed in the guidelines. A winning bidder who fails to fulfil the prescribed conditions within 90 days of receiving this offer will have the offer invalidated. The commission may thereafter invite the reserve bidders in their order of ranking.”

She also disclosed that President Bola Tinubu has approved the commencement of the 2026 licensing round and encouraged unsuccessful bidders to remain engaged.

“His Excellency, President Bola Tinubu, has given the commission approval to commence the 2026 bid round. So all hope is not lost.”

Calling on investors to move quickly after the awards, Mrs Eyesan said Nigeria has created a transparent and predictable regulatory environment for upstream investments.

…Minister seeks increased investment

Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the conference as a major milestone in Nigeria’s licensing process, stating that it reflects the government’s commitment to transparency, competitiveness, and credibility under the Petroleum Industry Act (PIA) 2021.

“The Federal Government, under the leadership of His Excellency, President Bola Ahmed Tinubu, remains firmly committed to creating an enabling environment that attracts investment, accelerates exploration and production, and unlocks the full value of Nigeria’s hydrocarbon resources,” he said. Mr Ekpo noted that the gas component of the licensing round is particularly significant as Nigeria pursues the objectives of the Decade of Gas Initiative.

“New upstream investments will provide the foundation for increasing gas reserves, expanding domestic gas supply, supporting industrialisation, improving energy access, and strengthening our position as a leading supplier of natural gas to regional and global markets.”

He stated that the Petroleum Industry Act, alongside the administration’s fiscal and regulatory reforms, has significantly strengthened investor confidence by promoting regulatory certainty, transparency, and ease of doing business. The minister commended the NUPRC for conducting the licensing process in line with international best practices and urged investors to take advantage of Nigeria’s abundant oil and gas resources.

Despite the renewed investor interest, environmental concerns remain widespread across many oil-producing communities, where residents continue to grapple with oil spills, gas flaring, and other ecological challenges associated with hydrocarbon exploration.