Nigeria’s oil and gas sector recorded a mixed outcome in the 2025 Licensing Round as investors declined to bid for 13 oil and gas blocks, most of which are located in the country’s frontier basins. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that the unclaimed assets will undergo further geological studies before being reintroduced to the market. Despite the setback, the commission believes the assets still hold significant potential once exploration risks are reduced.
Speaking after the 2025 Commercial Bid Conference in Abuja, NUPRC Chief Executive, Oritsemeyiwa Eyesan, explained that the regulator was not surprised by the lack of interest in the frontier basin assets. According to her, these blocks have not been sufficiently de-risked, making them less attractive to investors seeking commercially viable opportunities. She noted that the commission had been transparent about the challenges associated with the assets from the beginning of the bidding process.
While 13 blocks failed to attract bidders, the licensing round was largely considered successful, with investors submitting bids for 37 out of the 50 oil and gas assets on offer. Eyesan revealed that the awarded assets are expected to unlock nearly 500 million barrels of crude oil reserves and about two trillion cubic feet of natural gas. The projects could also increase Nigeria’s oil production by 300,000 barrels per day, with at least 100,000 barrels expected to come online within the next three years.
The commission also highlighted growing investor confidence in Nigeria’s upstream petroleum industry. Nearly 300 companies initially expressed interest in the licensing round, with 196 firms passing the prequalification stage and 143 companies eventually submitting close to 200 commercial bids. Eyesan described the level of participation as a strong signal that international and local investors are regaining confidence in the country’s oil and gas sector following recent industry reforms under the Petroleum Industry Act (PIA).
Looking ahead, the NUPRC has warned successful bidders that acquiring a licence is only the beginning. The commission stressed that operators must actively develop awarded assets or risk losing them under the PIA’s “drill or drop” provisions. Eyesan also confirmed that President Bola Tinubu has approved a new licensing round for 2026, giving investors another opportunity to participate. With Nigeria targeting crude oil production of three million barrels per day by 2030, the government hopes the next bidding exercise will attract stronger interest and help unlock more of the nation’s vast energy resources.
source: punch
