Elumelu’s Heirs Energies, NNPC, Others; Losers, Shockers From Nigeria Oil Bid Rounds

OIL BID UPSET: How Oil Gaints Were Left Empty-Handed As Little-known Firms dominated the Nigeria’s Lucrative Oil Blocks winners’ list

Nigeria’s third oil block licensing round in four years has ended with major upsets, as some of the country’s biggest oil players came back Empty-Handed while hitherto little-known firms walked away with prime assets.

While the licensing round has been said to have passed the transparency test, the outcome has been described by industry watchers as the most dramatic shake-up since the Petroleum Industry Act, PIA, was signed into law in 2021.

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, concluded the 2024/2025 licensing round last week with the announcement of winners for 24 oil blocks and seven deep offshore fields.

The Major Upset

The results stunned many because household names like Tony Elumelu’s Heirs Energies and the Nigerian National Petroleum Company Limited, NNPC, were among the big losers.

Heirs Energies, a subsidiary of Heirs Holdings owned by billionaire Tony Elumelu, entered the round with high expectations after its 2021 acquisition of OML 17 from Shell. The company had positioned itself as an indigenous champion ready to scale up production. But in this round, Heirs Energies failed to secure any of the blocks it bid for despite competing aggressively.

The state-owned NNPC also suffered embarrassment. Through its exploration subsidiary, NNPC E&P Limited, the company put in bids for several blocks but was outgunned by smaller, less capitalized firms. For an entity that controls most of Nigeria’s joint ventures, the loss raised questions about strategy and competitiveness in the new PIA era.

Instead, the winners’ list was dominated by names unfamiliar to most Nigerians. Companies such as Oceanbed Exploration, Setrab Nigeria Limited, Green Energy International, and a handful of new indigenous players emerged as successful bidders. Some of the firms were registered only a few years ago and have little track record in upstream operations.

According to NUPRC Chief Executive, Oritsemeyiwa Eyesan, the process was transparent and strictly merit-based. He said the commission evaluated technical capacity, financial capability, and work program proposals, not company size or political connections. “This is the new Nigeria where competence wins,” Komolafe told journalists at the bid closing event in Abuja.

Biggest Post-PIA Licensing Round

The licensing round is the largest since the PIA came into effect. It offered a total of 31 assets comprising 17 onshore blocks, 5 onshore assets in the Niger Delta, and 9 deep offshore blocks. Government officials say the goal was to boost production, attract fresh investment, and increase reserves currently pegged at about 37 billion barrels.

Industry analysts say the results signal a deliberate shift by regulators to break the dominance of big players and open space for agile independents. “For years, the same 5 or 6 companies took everything,” said an Abuja-based energy consultant. “Now we’re seeing a redistribution that could change the landscape.”

Concerns Over Derivables

But the shock losses have also sparked concern. Critics argue that giving strategic blocks to companies with no proven capacity could delay development and lead to asset flipping. “Winning a bid is one thing, developing it is another,” noted a senior executive at one of the losing majors who asked not to be named.

Heirs Energies has not issued a formal statement, but sources close to the company say it will review its bid strategy and focus on optimizing existing assets like OML 17, which currently produces over 40,000 barrels per day. The company had hoped to add new acreage to hit its target of 100,000 bpd by 2027.

For NNPC, the loss is particularly sensitive. The company is undergoing a commercialization process under the PIA and is expected to compete like any other player. Analysts say the outcome may force NNPC to retool its bidding unit and partner more with technical firms to remain relevant.

Winners Speak

The winners, meanwhile, are celebrating. Setrab Nigeria, which secured two onshore blocks, described the win as “a national call to duty.” Oceanbed Exploration said it plans to bring in technical partners and raise capital to begin seismic work within 12 months, as required by NUPRC rules.

Government hopes the new entrants will help Nigeria reverse years of production decline. Output has struggled to reach 1.5 million barrels per day due to theft, divestments by IOCs, and underinvestment. Officials believe fresh players with innovative models could unlock stranded assets faster.

The licensing round also featured the return of international interest, with a few foreign-backed firms partnering with local companies. However, majors like Shell, ExxonMobil, and TotalEnergies stayed out of the bidding, choosing instead to focus on divestments and deepwater projects already in their portfolio.

As the dust settles, one thing is clear: Nigeria’s oil sector is entering a new era. The days when only NNPC and a few billionaire-backed firms could dominate bid rounds appear to be over. Whether the newcomers can deliver on their promises will determine if this round becomes a turning point or just another missed opportunity for Africa’s largest oil producer.

NOP NIGERIA