Yemisi Izuora
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clearly stated that International energy companies bidding for oil and gas assets in Nigeria’s 2025 licensing round will not need to establish local subsidiaries upfront, but successful foreign bidders are expected to incorporate Nigerian entities within 90 days of receiving offer letters.
Nigeria currently seeks to attract foreign investment to 50 exploration blocks spanning mature and frontier basins, while balancing demands for local economic participation.
The Commission “confirmed that foreign entities are not required to establish a Nigerian subsidiary to participate, but any successful foreign bidder must incorporate a Nigerian subsidiary within 90 days of receiving the offer letter, as a condition precedent to the award of the asset,” according to details released following pre-bid conferences held in January.
With the development, companies can now enter the competitive bidding process without the upfront cost and commitment of local incorporation, but must demonstrate serious intent by establishing subsidiaries if awarded licenses.
The tender covers 35 assets in the prolific Niger Delta basin, including 16 onshore blocks, 18 in shallow waters and one deepwater prospect. An additional 15 blocks are located in frontier basins, including Benin, Anambra, Benue and Chad, representing higher-risk exploration opportunities with limited geological data.