By: Goodluck E.Adubazi, Abuja.
Nigeria is targeting crude oil and condensate production of three million barrels per day by 2030, as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concluded the commercial phase of the 2025 Licensing Round and warned successful bidders to fulfil all post-award conditions within 90 days or risk losing their entitlement.
The Commission said the assets offered in the licensing round, once successfully developed, are expected to contribute a minimum of 300,000 barrels per day of crude oil and condensate production over the next three years.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan during the Commercial Bid Conference themed “Expanding Opportunities: Right Play, Right Place, Right Time,” said the licensing round was designed to expand investment opportunities, boost production, increase reserves and strengthen Nigeria’s position in the global upstream oil and gas market.
Oritsemeyiwa said the process, which began eight months ago, followed President Bola Ahmed Tinubu’s directive to open new opportunities and ensure that Nigeria’s licensing process was conducted transparently, fairly and in line with international best practices.
According to Eyesan, the process attracted interest from about 300 companies across 50 available assets, while 196 applicants were prequalified to participate in the bidding stage.
By the submission deadline, she said, 143 companies had submitted 200 technical and commercial bids covering 37 assets.
The NUPRC boss said the evaluation process assessed bidders’ technical competence, experience, organisational and operational capacity, proposed work programmes, financial commitment and ability to deliver projects within stipulated timelines.
Oritsemeyiwa explained that the commercial evaluation would take into consideration the signature bonus, work programme commitment and work programme performance security, with the winning bidder determined by the highest weighted aggregate score.
Oritsemeyiwa Eyesan stressed that the process was not designed to simply award assets to the highest immediate financial offer, but to select bidders capable of delivering the best long-term value to the Nigerian government and economy.
“Petroleum acreage does not create value merely because it has been awarded.
It creates value when it is explored, discoveries are appraised, projects are developed and production reaches the market,” Eyesan said.
The Commission said the assets offered in the licensing round have the potential to add approximately 500 million barrels to Nigeria’s reserves, which currently stand at 37.01 billion barrels of crude oil and condensate, alongside 215.19 trillion cubic feet of natural gas.
The NUPRC further said the successful development of the assets would generate additional government revenue, boost foreign exchange earnings, increase infrastructure utilisation, create opportunities for indigenous oilfield service companies, promote employment and accelerate technology transfer.
Issuing a stern warning to successful bidders, the Commission Chief Executive declared: “Drill or drop.”
Oritsemeyiwa Eyesan said successful bidders would be required to invest, drill, develop and produce, warning that awarded acreage would not be allowed to remain inactive while Nigeria’s production, revenue and energy security objectives were delayed.
The Commission, however, assured credible operators of regulatory support through clear guidance, predictable decisions and timely intervention where genuine obstacles arise.
It also clarified that the announcement of successful bidders did not, by itself, constitute the final grant of a Petroleum Prospecting Licence.
According to the NUPRC, each successful bidder must satisfy all post-bid conditions contained in the licensing guidelines, including the provision of applicable guarantees, payment of the signature bonus and first-year rent, as well as execution of relevant contractual documents.
“A winning bidder that fails to fulfil the prescribed conditions within 90 days of receiving its offer letter will lose its entitlement to the asset,” the Commission warned.
It added that the government could subsequently invite reserve bidders, in order of ranking, to fulfil the conditions of the award.
The Commission said Nigeria was not seeking speculative holders of oil and gas acreage, but partners with the capacity, discipline and commitment to deliver measurable production and economic value.
The NUPRC also reaffirmed its commitment to predictable and periodic licensing rounds, saying regular access to acreage was necessary to sustain exploration, replenish reserves and provide investors with a clear pipeline of opportunities.
The Commission Chief Executive,Mrs Oritsemeyiwa Eyesan further disclosed that President Tinubu had given approval for the commencement of the 2026 licensing round, promising that another basket of investment opportunities would soon be presented to investors.
The NUPRC
The NUPRC Chief Executive, Eyesan said the success of the 2025 Licensing Round would ultimately be measured not by the number of winning bidders announced, but by the speed at which the awards translate into seismic acquisition, drilling, development and, ultimately, new oil and gas production.
Successful bidders include SSONIC Petroleum Company Limited, which secured PPL 2A29 (onshore) with an 87 per cent bid; CFP Pipelines and Flowlines Company Limited, which won PPL 2A30 (onshore) with 27 per cent; Dutch Ford Exploration and Production Company Limited, which secured PPL 2A32 with 100 per cent; and ATTABSON Global Company Nigeria Limited, which won PPL 2A33 (shallow waters) with 82 per cent, among others.
