FG Returns 13 Oil Blocks to Licensing Basket as 143 Firms Submit 200 Bids

The Federal Government has disclosed that 13 of the 50 oil and gas blocks offered under the 2025 Licensing Round will be returned to the licensing basket after failing to attract investor bids.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, announced the development on Tuesday during the 2025 Commercial Bid Conference in Abuja.

According to Eyesan, while the licensing round initially offered 50 blocks across several sedimentary basins, only 37 blocks attracted representations from prospective investors.

“At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning back to the basket,” she said.

Despite the unbid assets, the NUPRC boss described the level of participation in the licensing exercise as encouraging, noting that 143 companies submitted approximately 200 bids for the available oil and gas blocks.

“We have a total of 143 companies showing interest for 200 bids. That, for us, was remarkable,” she said.

Eyesan disclosed that nearly 300 companies initially expressed interest when the licensing process commenced, describing the response as evidence of improving investor confidence in Nigeria’s oil and gas industry.

“When we started the journey, we got interest from almost 300 companies. That, in my view, was an indication that the tide has turned for Nigeria,” she added.

She explained that the number of interested firms was reduced during the prequalification phase, with 196 companies advancing before further technical and commercial evaluations narrowed participation to 143 bidders.

The NUPRC chief also stressed that the highest financial bidder would not automatically emerge as the winner of an oil block, noting that technical competence and operational capability would carry significant weight in the final selection process.

According to her, the commission’s evaluation framework is designed to place petroleum assets in the hands of investors capable of delivering long-term value rather than companies that merely submit the highest financial offers.

“The evaluation was rigorous. It was objective. It was simple. And it was to place assets in the hands of bidders capable of delivering the best overall long-term value. It isn’t going to be just about your ability to be the highest bidder,” Eyesan said.

“We want to ensure that you have the right capabilities to deliver the assets, in addition to having the financial resources to deliver these assets.”

She said bidders were assessed on competence and experience, organisational and operational capacity, the credibility of proposed work programmes, resource commitments and their ability to execute projects within specified timelines.

Eyesan further assured participants that the commercial bid opening process remained transparent and competitive.

“Today, the commercial components of the qualified bids will be opened. Nobody has seen anybody’s commercial bids. This approach is in recognition of the fact that these assets must be operated by credible, competent operators, not operators who can simply bid the highest,” she added.

The commercial bid opening marks the final phase of the licensing process before successful bidders are announced by the regulator.

The 2025 Licensing Round was launched on November 11, 2025, under the provisions of the Petroleum Industry Act (PIA) 2021.

The exercise offered 50 oil and gas blocks across seven sedimentary basins, including 16 Niger Delta onshore blocks, 18 shallow water blocks, one deep offshore block, three blocks in the Benin Basin, four blocks in the Anambra Basin, four blocks in the Chad Basin and four blocks in the Benue Trough.

Industry stakeholders view the licensing round as a key test of investor appetite for Nigeria’s upstream sector as the country seeks to boost crude oil production, attract fresh investment and maximise the value of its hydrocarbon resources.

Under the licensing guidelines, winning bids are determined through a weighted evaluation of signature bonus commitments, proposed work programmes and performance security, combining technical and commercial scores rather than financial offers alone.

The framework is intended to ensure that petroleum assets are awarded to investors with the financial strength, technical expertise and operational capacity required to accelerate exploration and production in Nigeria’s upstream sector.