Nigeria Launches 2025 Oil and Gas Licensing Round with 143 Companies Competing for 50 Blocks
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the start of the decisive commercial phase of the 2025 oil and gas licensing round. This stage marks a significant milestone in an extensive process that began in November 2025, aiming to attract investment into Nigeria’s upstream petroleum sector.
A total of 143 companies have been invited to participate in the commercial bid conference, which will be held at the Conference Centre of the Transcorp Hilton Hotel in Abuja on Tuesday. The event is strictly by invitation, highlighting the exclusivity and importance of this phase.
Key Details of the Licensing Round
The licensing round offers 50 oil and gas blocks across various geological terrains, including:
- Niger Delta Onshore: 16 blocks
- Niger Delta Shallow Water: 18 blocks
- Niger Delta Deep Offshore: 1 block
- Benin Basin Onshore: 3 blocks
- Anambra Basin Onshore: 4 blocks
- Chad Basin Onshore: 4 blocks
- Benue Trough: 4 blocks
This distribution reflects the government’s efforts to diversify exploration beyond traditional areas like the Niger Delta, focusing instead on emerging basins with high hydrocarbon potential.
Process and Evaluation Criteria
The licensing process includes several stages, starting with prequalification, followed by technical and commercial bidding. A total of 286 companies submitted applications for prequalification, with 196 being prequalified to move forward. Of these, 143 companies submitted 200 bids for the available assets.
The evaluation of bids will consider key parameters such as:
- Signature bonus – the upfront payment offered by bidders
- Work programme commitment – the proposed exploration and production activities
- Performance security – financial guarantees to ensure project execution
These elements will be combined into a weighted technical and commercial score to determine the winning bids.
Background and Significance
The 2025 Licensing Round was first announced on November 11, 2025, under the provisions of the Petroleum Industry Act, 2021. A bid portal was launched on December 1, 2025, allowing interested companies to register and participate. A pre-bid conference was held on January 14, 2026, in Lagos to explain the procedures to registered bidders.
The registration and submission of documents for prequalification closed on February 27, 2026, with the prequalification stage completed on March 16, 2026. The number of bids submitted indicates that some companies are competing for multiple blocks, reflecting strong interest in the opportunities presented.
Challenges and Opportunities
Nigeria has long struggled to attract sufficient investment due to challenges such as regulatory uncertainty, insecurity, aging infrastructure, and high operational costs. However, the NUPRC has emphasized recent reforms under the Petroleum Industry Act, aimed at creating a more predictable and investor-friendly environment.
The current licensing round is taking place against the backdrop of the government’s efforts to increase crude oil and gas production, attract fresh investment, and unlock underdeveloped petroleum assets. The successful conclusion of the commercial bidding phase will be closely watched as a test of Nigeria’s ability to convert its resources into new exploration activity and economic value.
Next Steps
Following the commercial bid conference, the NUPRC will proceed with the subsequent stages of the licensing process. Successful bidders will be determined based on the applicable rules and evaluation criteria for the 2025 Licensing Round.
The invitation to 143 companies for the commercial bid conference represents a major milestone in a process that began with 286 applications and now narrows the competition to those who have submitted 200 bids for the 50 blocks on offer.
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