NUPRC Launches 2025 Petroleum Licensing Round with Signature Bonuses from $3M to $7M
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the rules for its highly anticipated 2025 petroleum licensing round, introducing signature bonuses ranging from $3 million to $7 million. This move, aimed at reducing entry costs, aligns with global best practices and encourages broader participation from both local and foreign investors in Nigeria’s oil and gas sector.
A signature bonus is a one-time upfront payment made by companies that win licenses to explore or produce petroleum resources. According to NUPRC, the 2025 round aims to grow Nigeria’s oil and gas reserves, attract foreign direct investment, enhance local content development, and contribute to long-term energy security. The commission emphasized that the licensing exercise will also create job opportunities and generate value for both investors and the Nigerian government.
Fifty Petroleum Prospecting Licenses (PPLs) will be awarded, allowing successful companies to extract and sell crude oil or natural gas during exploration or production tests. Licenses will initially last three years, with possible extensions of up to three years for onshore and shallow water blocks, and five years for deepwater or frontier assets. The entire process is scheduled to run from November 17, 2025, to July 17, 2026.
NUPRC has also set strict eligibility criteria. Companies with government debts, poor operational histories, or insolvency risks are barred from participating. Technical competence and financial capacity will be rigorously evaluated, covering areas such as geological and geophysical work, reservoir management, drilling, production engineering, and development planning. Entities must also meet minimum financial thresholds, including an average annual turnover of $100 million for deepwater blocks and $40 million for onshore or shallow water blocks.
The commission clarified reports regarding the Frontier Exploration Fund (FEF), confirming that $185 million and N14.9 billion had been approved but that funds are held in a Central Bank of Nigeria account, not with NUPRC. Funds are only released after certification of awarded contracts and work programs. PwC has been contracted to audit these approvals, ensuring transparency and accountability. NUPRC also confirmed that Minister of State for Petroleum, Heineken Lokpobiri, has denied any investigation into the handling of the fund, dismissing claims aimed at tarnishing the regulator’s reputation.
source: arise