NUPRC Expects 500 Million-Barrel Reserve Boost From 37 Oil, Gas Assets

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has projected that the 37 oil and gas assets offered under the ongoing Nigeria 2025 Licensing Round could 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 projection comes as Nigeria intensifies efforts to boost hydrocarbon reserves, increase crude oil output and attract fresh investment into the upstream petroleum sector in pursuit of its target of producing three million barrels per day by 2030.

Speaking at the Commercial Bid Conference for the Nigeria 2025 Licensing Round in Abuja on Tuesday, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, said the assets on offer could significantly strengthen Nigeria’s reserve base while accelerating production growth.

According to her, the expected reserve additions would build on Nigeria’s current crude oil and condensate reserves of 37.01 billion barrels and gas reserves of 215.19 trillion cubic feet.

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

“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.”

Eyesan said the Federal Government remains committed to supporting production from both small and large fields as part of efforts to broaden participation in the upstream sector and maximise value creation for investors and government.

She noted that the licensing round is expected to generate benefits beyond increased reserves and production, including higher government revenues, stronger foreign exchange earnings, job creation and expanded opportunities for indigenous service companies.

According to her, the exercise will also improve utilisation of existing infrastructure and encourage technology transfer into Nigeria’s oil and gas industry.

The NUPRC chief emphasised that transparency remains a cornerstone of the licensing process, noting that participation requirements, evaluation criteria and commercial conditions were clearly outlined in published guidelines and reinforced through stakeholder engagements.

She disclosed that the Nigeria Extractive Industries Transparency Initiative observed the evaluation process to strengthen public confidence and ensure credibility.

According to Eyesan, technical evaluation focused on bidders’ competence, operational capability, financial strength, proposed work programmes and ability to deliver projects within specified timelines.

“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.

She warned that successful companies would be expected to move quickly from licence acquisition to development in line with the “drill or drop” provisions contained in the Petroleum Industry Act.

“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,” Eyesan stated.

Eyesan clarified that the announcement of successful bidders would not amount to the immediate issuance of Petroleum Prospecting Licences (PPLs).

She explained that winning companies would be required to 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 offer letters.

Failure to satisfy these conditions within the stipulated period would result in forfeiture of the award, with the commission retaining the right to invite reserve bidders based on ranking.

The NUPRC chief further disclosed that President Bola Tinubu had approved the commencement of the 2026 licensing round, providing another opportunity for investors interested in Nigeria’s upstream sector.

Speaking at the conference, Ekperikpe Ekpo said the Federal Government remained committed to creating an enabling environment that attracts investment, accelerates exploration activities and increases hydrocarbon production.

He noted that the licensing round is particularly important for the gas sector as Nigeria pursues the objectives of the Decade of Gas Initiative.

According to Ekpo, fresh upstream investments would help increase gas reserves, expand domestic gas supply, support industrialisation, improve energy access and strengthen Nigeria’s position as a regional and global energy supplier.

The minister said reforms introduced through the Petroleum Industry Act, alongside broader fiscal and regulatory measures, had improved investor confidence by promoting transparency, regulatory certainty and ease of doing business.

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

Also speaking, Heineken Lokpobiri described Nigeria as one of the world’s most attractive destinations for upstream oil and gas investment.

Lokpobiri commended the NUPRC for conducting a transparent and competitive process, noting that discretionary allocation of oil blocks had become a thing of the past under the Petroleum Industry Act.

The minister stressed that oil block awards should no longer be treated as symbols of prestige but as commitments to invest capital, develop resources and deliver production.

With the potential addition of 500 million barrels to reserves and 300,000 bpd to national output, the licensing round could play a significant role in advancing Nigeria’s ambition of reaching three million barrels per day by the end of the decade while boosting government revenue and foreign exchange earnings.