NUPRC Moves Nigeria Oil Licensing Round to Commercial Stage with 143 Companies Bidding for 50 Blocks
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advanced its oil and gas licensing round to the commercial bidding stage, with 143 companies competing for 50 petroleum blocks across Nigeria’s established and frontier hydrocarbon basins.
The invitation-only commercial bid conference marks a major milestone in the licensing process, which aims to attract new investment into Nigeria’s upstream sector and unlock additional oil and gas resources.
According to NUPRC, companies that successfully completed the prequalification stage have been invited to participate in the commercial bidding process.
Only firms that met the commission’s technical and regulatory requirements were allowed to proceed to this stage.
The available blocks are distributed across several geological regions, including the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin, Anambra Basin, Chad Basin and Benue Trough.
The allocation reflects the government’s strategy to encourage exploration beyond traditional producing areas and promote investment in emerging hydrocarbon provinces.
The commission said bids will be evaluated based on three key factors: signature bonus offers, proposed work programmes, and commitments to provide performance security. These criteria will be combined into a weighted technical and commercial assessment that will determine the successful bidders.
Interest in the licensing round has remained strong, with 286 companies initially submitting applications during the prequalification phase.
Following the review process, 196 companies were approved to advance to the technical and commercial bidding stages, while 143 companies submitted a combined 200 bids for the available blocks.
The competitive response highlights continued interest in Nigeria’s oil and gas sector despite challenges that have affected upstream investment, including regulatory uncertainty, security concerns, infrastructure constraints and rising operational costs.
The licensing round was launched under the framework of the Petroleum Industry Act (PIA) 2021, which introduced reforms aimed at improving transparency, strengthening regulation and creating a more attractive environment for investors.
NUPRC has emphasised that the licensing process is part of broader government efforts to increase crude oil and natural gas production, improve energy security, generate additional revenue and provide feedstock for domestic industries, including Nigeria’s expanding refining sector.
The commission introduced an online bid portal to streamline participation and also conducted a pre-bid conference to provide guidance on the licensing procedures, requirements and evaluation process.
The outcome of the commercial bidding stage will be closely monitored by industry stakeholders as an indication of investor confidence in Nigeria’s upstream sector. Successful bidders are expected to contribute to exploration activities, resource development and increased petroleum production.
Following completion of the remaining evaluation stages, NUPRC will announce the successful companies selected to acquire interests in the available blocks.
The results will determine the next phase of Nigeria’s efforts to expand its oil and gas industry and attract long-term investment.
