NUPRC Gives Oil Block Winners Deadline to Complete Payments

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed 31 companies that secured 37 oil and gas blocks during the 2025 Licensing Round to complete the payment of their signature bonuses within the stipulated period or risk losing their provisional awards.

The regulator stated that compliance checks had commenced following the issuance of provisional award letters to the successful bidders. It warned that any company that fails to meet the payment requirements within the timeline provided under the Petroleum Industry Act (PIA) would forfeit its bid guarantee, while the awarded block would be transferred to a reserve bidder.

The licensing round covered oil and gas assets across several locations, including the Niger Delta, deep offshore areas, the Benin Basin, Anambra Basin, Chad Basin, and the Benue Trough.

According to the commission, 143 companies participated in the exercise, submitting nearly 200 bids for the available blocks. However, 13 of the 50 blocks initially offered did not attract any bids.

Successful bidders are required to pay signature bonuses ranging from $3 million to $7 million per block, alongside first-year rents and other post-award obligations. The NUPRC noted that failure to fulfil these conditions would trigger the automatic reassignment of the affected assets to the next-ranked reserve bidders.

The commission also encouraged stakeholders and interested members of the public to visit the licensing round portal for details on the awards and compliance requirements.

Under the provisions of the Petroleum Industry Act, winning bidders have a 90-day window to complete all required payments. With provisional awards issued on July 21, 2026, the deadline for compliance is expected to expire on October 19, 2026.

The NUPRC said the measure is aimed at ensuring transparency, accountability, and timely development of the awarded oil and gas assets.