The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that licensing rounds will now be conducted annually — a strategic shift designed to strengthen investor confidence, create planning predictability, and stimulate long-term capital inflow into the oil and gas sector. The new round is projected to be the most consequential since the implementation of the Petroleum Industry Act (PIA) 2021.
Set to officially open on December 1, the 2025 bid round prioritises natural gas alongside crude oil, in line with Nigeria’s sustainable development and energy transition commitments. The focus is on discovered but undeveloped fields, including fallow assets that have remained dormant for years.
According to the Commission, the exercise is anchored on transparency, regulatory consistency, and the drive to optimise hydrocarbon resources rather than seeking only new frontiers. The event also aligns with the PIA’s “drill or drop” provision, which mandates operators to develop awarded assets within a specific timeframe or relinquish them.
To enforce this provision, NUPRC has recovered several idle and under-utilised assets, now prepared for reallocation. Industry insiders estimate that about 24 blocks — spanning onshore, shallow-water, and deep offshore terrains — will be available in the upcoming exercise.
Sections 94(4)–94(8) of the PIA clearly outline the obligations for marginal field operators, including the submission of field development plans within three years, options for farm-out arrangements, and penalties for non-compliance. These provisions are intended to keep assets productive and reduce the extended dormancy that has slowed Nigeria’s production growth for decades.
The success of the fully digital 2024 licensing round, praised for transparency and efficiency, provides a blueprint for the 2025 cycle. The new round will incorporate real-time digital tracking, a multi-layered evaluation process, and encrypted commercial bidding livestreamed to the public. These mechanisms are designed to eliminate opacity that characterised previous bid rounds and to promote a fair, competitive environment.
Most of the upcoming blocks are located in the Niger Delta’s onshore and shallow-water regions — areas with complex operating environments that have slowed development in the past. Additional opportunities are expected in the continental shelf and deep offshore terrains, where proven resources remain underdeveloped due to capital and technical constraints.
The 2025 licensing round is expected to help Nigeria boost production capacity, accelerate gas development, strengthen energy security, and unlock significant economic value for national prosperity.
