The Federal Government has warned prospective investors in the 2025 oil licensing round that any errors, miscalculations, or disappointments arising from the bidding process will be borne entirely by the companies involved, stressing that there will be no refunds of signature bonuses or exchanges of oil assets under any circumstances.

The warning was issued by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the 2025 Nigerian Upstream Petroleum Regulatory Commission pre-bid conference held in Lagos on Wednesday. The conference, which attracted a large turnout both physically and online, was aimed at educating prospective bidders on available assets, the legal framework, and the risks involved in the licensing process.

Lokpobiri said the era when oil licences were acquired for speculation, prestige or resale was over, adding that licences are government assets that must be actively developed.

“I’ve had obligations to solve so many problems following the 2020 bid round. The government received several representations from people who won those bids; some of them came for refunds of their bidding fees. It is clearly stated that if you go for any bid round, the registration fee is not refundable. But some people came to my office demanding a refund of the bidding fees,” he said.

The minister also recounted how some bidders complained that the assets awarded to them did not meet their expectations and demanded alternative acreages.

“A few of these bidders have also come to say they should be given other acreages and that the one they bid for was not good enough, ‘so give us another one’. I want to state very clearly that the PIA does not provide for asset exchanges or refunds on these grounds,” Lokpobiri said.

According to him, once a bid is completed and an award is made in line with the law, the technical and commercial risks rest entirely with the bidder.

“The government under any law has no obligation to refund your bidding fees or your signature bonuses because you find out that eventually you didn’t see oil or you only found gas,” he declared.

Lokpobiri warned against holding oil blocks without development, describing licences as instruments of value creation rather than personal trophies.

“What I’ve discovered in my over two years at the ministry is that some people have had licences for 20 years, and they are very proud, going around the world with the nicest suits and saying, ‘Look, I have a licence.’ What value have you added to yourself?” he asked.

The minister emphasized that the 2025 licensing round is firmly anchored on the Petroleum Industry Act, noting that Sections 73 and 74 of the law require petroleum prospecting licences and petroleum mining leases to be awarded through transparent, competitive, and non-discriminatory processes based on financial, technical, and work programme parameters.

He urged companies without sufficient capital to collaborate with credible partners to ensure the viability of their bids, adding that hydrocarbons would remain central to global energy supply for decades.

“Fossil fuel resources will never go away. They will constitute over 50 per cent of global energy sources for the foreseeable future,” Lokpobiri said.

Echoing the minister’s position, the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, said reforms introduced under the Petroleum Industry Act have eliminated practices that previously encouraged asset hoarding.

“Hitherto, the PIA, we had instruments that supported block sitting. With the advent of the PIA, if you do not work your blocks, it will be taken from you. And many of the assets on offer today are recovered as fallow fields,” she said.

Eyesan also announced a revision of the signature bonus approved by President Bola Tinubu to reduce entry barriers, alongside adjustments to other fees payable before first oil. She added that the commission plans to commence the 2026 bid round almost immediately, running preliminary processes alongside the 2025 round to ensure continuity.

Beyond licensing, Eyesan unveiled a sweeping reform agenda aimed at accelerating oil production, improving regulatory efficiency, and tightening hydrocarbon accountability, as the Federal Government targets crude oil output of three million barrels per day by 2030.

At a separate stakeholder engagement in Lagos, she disclosed that the commission had commenced a 90-day programme to fast-track approvals for near-ready Field Development Plans, well interventions, rig mobilization, and other “quick-win” opportunities capable of delivering early barrels.

“The commission, going forward, will issue quarterly progress reports. Let us therefore bring all high-impact shut-in fields for approval,” she said, noting that a long shut-in asset had recently been brought back on stream.

Eyesan said her vision for the upstream sector rests on three pillars: production optimization and revenue expansion; regulatory predictability and speed; and safe, governed, and sustainable operations. She added that the agenda aligns with President Bola Tinubu’s Renewed Hope Agenda to raise production to two million barrels per day by 2027 and three million barrels per day by 2030.

According to her, the commission will publish Service Level Agreements outlining approval timelines, deploy digital workflows for permitting and data submissions, and run regulation “like a service” through transparent, time-bound decisions.

She urged operators with mature opportunities to submit projects before the end of the first quarter of 2026 and announced the creation of a monthly CCE–Operators Leadership Forum involving NNPC, OPTS, IPPG, and emerging producers.

“Going forward, the commission will be measured by faster and more predictable approvals, higher and more secure production, credible licensing, disciplined acreage performance, world-class health, safety, and environment outcomes, and trusted data integrity,” Eyesan said. (The PUNCH)

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