Investors Shun 13 Oil Blocks as Federal Government Plans Fresh De-Risking Ahead of Next Bidding Round

Thirteen oil and gas blocks located primarily in Nigeria’s frontier basins received zero bids during the 2025 Licensing Round, prompting the Nigerian Upstream Petroleum Regulatory Commission to return the assets to the basket for further geological work.

Speaking at the conclusion of the 2025 Commercial Bid Conference in Abuja, NUPRC Commission Chief Executive Oritsemeyiwa Eyesan noted that the lack of investor interest in the affected assets was anticipated, as the frontier blocks have not yet been sufficiently de-risked to attract commercial capital. The shunned assets include PPL 2A31, PPL 2A34, PPL 2A35, PPL 2A36, PPL 2A37, PPL 2A52, PPL 307, PPL 309, PPL 701, PPL 702, PPL 703, PPL 802, and PPL 803.

Despite the unsold assets, the licensing round saw significant participation overall. Out of 50 blocks offered across seven sedimentary basins, 37 received bids from prospective investors. The successful blocks are projected to unlock approximately 500 million barrels of crude oil reserves and two trillion cubic feet of natural gas. They are also expected to increase national production by 300,000 barrels per day, with roughly 100,000 barrels per day anticipated within the next three years.

The NUPRC chief emphasized that under the Petroleum Industry Act, the regulator will continuously recycle dormant and underperforming assets recovered from operators who fail to meet development thresholds.

Winners of the 37 awarded blocks have been given a strict 90-day window to fulfill post-bid requirements, including paying signature bonuses, submitting guarantees, and executing contract agreements. Failure to meet these conditions will lead to offer invalidation and invitation of reserve bidders.

In addition, the commission issued a firm warning regarding the PIA’s “drill-or-drop” provisions. License holders who fail to initiate development work within three years will forfeit their assets back to the federal government.

Looking ahead, the regulatory body confirmed that President Bola Tinubu has approved the commencement of the 2026 bidding round, allowing the government to reintroduce the frontier blocks once additional geological data and exploration work enhance their market viability.