Joseph Bakare
Nigeria has successfully concluded an eight months oil bid exercise aimed at improving oil production through oil field auctioning.
At the end of the exercise thirty-one companies emerged winners of 37 oil and gas blocks offered by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the 2025 Licensing Round.
The development is expected to support Nigeria’s ambitious plans to increase crude oil production and significantly expand its hydrocarbon reserves.
The conclusion of the commercial bid conference, in Abuja, further marked the culmination of an eight month process that attracted about 300 expressions of interest at inception before narrowing to 143 qualified companies that submitted 200 technical and commercial bids for 37 of the 50 assets originally put on offer.
The other 13 blocks failed to attract bids.
The Commission explained that many of the assets are located in frontier basins that require additional geological work and de-risking before they can become commercially attractive to investors.
The assets on offer were spread across the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin, Anambra Basin, Chad Basin and the Benue Trough.
However, the NUPRC said the winning companies will only receive their final Petroleum Prospecting Licences (PPLs) after paying the applicable signature bonuses, obtaining the approval of the Minister of Petroleum Resources, and fulfilling all post award conditions stipulated under the Petroleum Industry Act (PIA) 2021 and the licensing guidelines.
The successful companies, include SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot GIS Limited (2A39), Network E&P (2A40) and Asharami (2A41).
Others were: LexOil (2A42), BVOF (2A43), Gupsco Energy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62), Nuway Oaklane Limited (2A49), Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57) as well as Blackrock Holdings Limited (2A58).
Others are Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL 308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903), Highban Resources Limited (PPL 700) and Eyre Energy Limited (PPL 801).
The Commission’s Chief Executive (CCE) Mrs Oritsemeyiwa Eyesan, described the event as a major milestone in Nigeria’s upstream petroleum sector, saying the process had been conducted strictly in line with President Bola Tinubu’s directive for transparency, fairness and global best practice.
Eyesan stated that the assets on offer have the potential to increase Nigeria’s crude oil and condensate reserves by about 500 million barrels, raising existing reserves from 37.01 billion barrels, while complementing the country’s 215.19 trillion cubic feet of proven gas reserves.
She further disclosed that, once developed, the assets are expected to contribute at least 300,000 barrels per day of additional crude oil and condensate production within three years, supporting the federal government’s target of producing three million barrels per day by 2030.
“This licensing round represents a vital step for Nigeria in achieving its goal of reaching three million barrels per day by 2030. These projections represent more than additional barrels. They represent increased government revenue, improved foreign exchange earnings, greater utilisation of infrastructure, opportunities for indigenous service companies, employment creation, technology transfer and broader economic growth,” she stated.
Eyesan stressed that the Commission’s objective was not merely to allocate acreage but to place the country’s petroleum assets in the hands of investors capable of delivering long term value through exploration, development and production.
Issuing a stern warning to the successful companies, Eyesan emphasised that winning the bid did not automatically translate into ownership of the assets. She declared: “An award is not a trophy to be held. It is an obligation to invest, drill, develop and produce. Our message is therefore clear: drill or drop.”
She further warned that any company that fails to satisfy all post bid requirements within the stipulated period would automatically forfeit its award.
“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 may thereafter invite the reserve bidders in their order of ranking to fulfil the conditions of the award. The government is not seeking speculative holders of acreage; it is seeking partners with the capacity, discipline and commitment to deliver measurable production and economic value,” she said.
Speaking with journalists after the exercise, Eyesan explained why 13 blocks received no bids, noting that the assets are located mainly in frontier basins that require further geological work before they become commercially attractive.
“So when we launched the bid, we were very transparent and open and explained that some of these assets are in frontier basins. Frontier means that they have not yet been de-risked and so we were not surprised when we saw that some of these assets returned with no bidders.
“What it therefore means is that we will go back and do some more work to de-risk these assets and bring them back to the market. I’m sure from the studies that we’ve been doing and the work that we need to do, these assets will come up and definitely be picked up,” she stated.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the commercial bid conference as another important milestone in Nigeria’s petroleum licensing process.
According to him, the Bola Tinubu administration remains committed to creating an investment friendly environment capable of accelerating exploration and unlocking the country’s vast hydrocarbon resources.
Ekpo argued that the Petroleum Industry Act had significantly strengthened investor confidence by promoting regulatory certainty, transparency and ease of doing business.
“ Today’s exercise further demonstrates that Nigeria’s licensing regime is anchored on fairness, accountability and international best practice,” the minister stated.
He urged investors to leverage Nigeria’s enormous gas resources to support industrialisation, improve domestic energy access and strengthen the country’s position in regional and global energy markets.
Also speaking, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, maintained that Nigeria remains one of the world’s most attractive investment destinations, particularly given recent geopolitical developments affecting global energy markets.
“Nigeria as of today is one of the most attractive investment destinations in the world. These assets are among the most valuable assets that you can think of anywhere in the world because of Nigeria’s strategic location in the Gulf of Guinea,” he said.
Lokpobiri also commended the Petroleum Industry Act for eliminating discretionary allocation of oil blocks and replacing it with a transparent competitive bidding process. He, however, cautioned the successful companies against treating the licences as speculative assets.