Nigeria Concludes 2025 Upstream Oil Licensing Round as 31 Indigenous Bidders Emerge Winners

Nigeria has completed its 2025 petroleum licensing exercise, awarding 37 oil and gas assets to 31 successful companies following a seven-hour commercial bid opening session in Abuja.

The competitive auction, organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Petroleum Industry Act 2021, attracted about 200 commercial bids from 143 companies. The exercise marks the second consecutive year of structured bidding in a sector previously defined by irregular licensing rounds and administrative uncertainty.

A total of 50 blocks were initially offered across seven sedimentary basins when the licensing round was announced in November 2025. However, 13 frontier and inland blocks failed to attract commercial bids and were returned to the government’s basket. Among the unallocated assets were six blocks in the Niger Delta, three in the Chad Basin, and two each in the Benue and Benin basins.

Speaking during the opening ceremony, Commission Chief Executive Oritsemeyiwa Eyesan clarified that submitting the highest financial offer did not guarantee winning an asset. The regulator emphasized that technical capability, organizational capacity, environmental commitments, and proposed work programs carried significant weight in the final evaluations.

To minimize human discretion, the NUPRC utilized an automated scoring system. Pre-evaluated technical parameters were combined with live commercial inputs to generate immediate scores for preferred and reserve bidders. Under the rules, participating companies were restricted to winning a maximum of two blocks to prevent market concentration, though bidders committed an additional $23.8 million in signature bonuses during tie-breaking procedures.

The vast majority of the successful bidders are domestic and indigenous companies. Major International Oil Companies (IOCs), including Shell, TotalEnergies, ExxonMobil, Eni, and Equinor, were notably absent from the list of winners.

### Industry Experts Urge Post-Bid Transparency

Reactions to the outcome have highlighted both progress and areas for improvement. Energy analysts acknowledged that the introduction of a fixed bidding calendar and automated scoring represents a substantial shift away from historical discretionary allocations.

However, industry experts have called for complete post-bid disclosures to maintain public trust. Recommendations include publishing full evaluation reports, detailing weighted criteria, and enforcing beneficial ownership disclosures to ensure transparency regarding the ultimate owners of the awarded assets.

Questions remain regarding the timeline for production. Analysts noted that bringing new offshore and inland blocks into full production often takes several years. To achieve the national target of three million barrels per day in the shorter term, experts suggest combining new licensing rounds with targeted incentives to reactivate abandoned or underperforming fields.

Successful participants also pointed to operational challenges beyond licensing, including high signature bonus costs, host community relations, and security concerns in inland basins such as Benue and Chad.

With the 2025 exercise concluded, attention now shifts to the preparation for the 2026 licensing round, which has already received executive approval. Regulators face the task of addressing feedback from the latest process to further streamline future auctions and maintain investor confidence.