The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said the 37 oil and gas assets offered under the ongoing Nigeria 2025 Licensing Round have the potential to add about 500 million barrels to the country’s crude oil reserves and contribute at least 300,000 barrels per day (bpd) to national production within the next three years.

The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this on Tuesday at the Commercial Bid Conference for the Nigeria 2025 Licensing Round in Abuja, where qualified bidders submitted commercial bids for the available assets.

According to Eyesan, the additional reserves would build on the country’s current crude oil and condensate reserves of 37.01 billion barrels and gas reserves of 215.19 trillion cubic feet, while supporting the Federal Government’s target of increasing crude oil production to three million barrels per day by 2030.

“The assets available in the licensing round have the potential to add about 500 million barrels to Nigeria’s reserves.

“We also expect that from this exercise, we will be unlocking about 300,000 barrels of oil production per day. We are looking at 37 assets that can come into production in the next three years. The licensing round represents a vital step for Nigeria in achieving its goal of reaching three million barrels by 2030,” she stated.

She said the government would continue to support production from both small and large fields to broaden participation in the upstream sector while ensuring the development of what she described as “efficient barrels” that create value for both investors and the government.

Eyesan noted that beyond increasing reserves and production, the licensing round is expected to boost government revenue, improve foreign exchange earnings, create jobs, expand opportunities for indigenous service companies, enhance infrastructure utilisation and promote technology transfer.

The NUPRC boss stressed that transparency remained the hallmark of the licensing process, saying participation requirements, technical and commercial criteria, as well as evaluation procedures, were clearly spelt out in the published guidelines and reinforced through the licensing portal, pre-bid conference and a series of stakeholder webinars.

She added that the Nigeria Extractive Industries Transparency Initiative (NEITI) observed the evaluation process to further strengthen the credibility of the exercise.

According to her, the technical evaluation focused on bidders’ competence, operational capacity, financial capability, work programme and ability to deliver projects within stipulated timelines, rather than on financial offers alone.

“It is not going to be just about your ability to be the highest bidder. We want to ensure that you have the right capabilities to deliver the asset, in addition to having the financial resources to deliver this asset,” she said.

Eyesan warned that companies emerging successful in the licensing round must move swiftly to develop the assets, reminding investors of the “drill or drop” provisions contained in the Petroleum Industry Act (PIA).

“The award should not be a trophy. It should not be just a medal of honour. Our expectation is that you are going to work these assets. If you do not do anything in three years, we will come for those assets,” she said.

She explained that the Commission would measure the success of the licensing round not by the number of licences awarded but by how quickly successful bidders progress from seismic acquisition to drilling, field development and ultimately commercial production.

The NUPRC chief also clarified that the announcement of winning bidders would not amount to the immediate grant of Petroleum Prospecting Licences (PPLs), noting that successful companies must fulfil post-bid obligations, including payment of signature bonuses, first-year rent, provision of required guarantees and execution of contractual agreements within 90 days of receiving their offer letters.

Failure to meet the conditions within the stipulated period, she said, would lead to forfeiture of the award, with the Commission reserving the right to invite reserve bidders in order of ranking.

Eyesan disclosed that President Bola Tinubu had approved the commencement of the 2026 licensing round, assuring unsuccessful bidders that another opportunity to compete for upstream assets would soon be available.

Earlier, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Federal Government remained committed to creating an enabling environment capable of attracting investment, accelerating exploration and production, and unlocking the full value of Nigeria’s hydrocarbon resources.

Ekpo said the licensing round was particularly significant for the gas sector as Nigeria continues to pursue the objectives of the Decade of Gas Initiative, noting that fresh upstream investments would provide the foundation for increasing gas reserves, expanding domestic gas supply, supporting industrialisation, improving energy access and strengthening the country’s position as a regional and global energy supplier.

The minister noted that reforms introduced under the Petroleum Industry Act (PIA), alongside the administration’s fiscal and policy measures, had improved investor confidence by promoting regulatory certainty, transparency and ease of doing business.

According to him, the commercial bid exercise further demonstrated that Nigeria’s licensing regime was built on fairness, accountability and international best practices.

He commended the leadership and staff of the NUPRC for conducting what he described as a transparent and credible process, urging prospective investors to take advantage of the opportunities available in Nigeria’s upstream sector.

“Today’s exercise further demonstrates that Nigeria’s licensing regime is anchored on fairness, accountability, and international best practice,” Ekpo said.

Also speaking, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, described Nigeria as one of the world’s most attractive investment destinations, citing ongoing reforms under the Petroleum Industry Act and the country’s strategic location.

He commended the Commission for conducting a transparent and competitive licensing process, saying discretionary allocation of oil blocks had become a thing of the past under the PIA.

“I believe in Julius Berger… let the best win,” the minister said, adding that oil block licences should no longer be treated as trophies but as commitments to invest and produce. (The Sun)

Update news