Nigeria Awards 37 Oil and Gas Blocks Under 2025 Licensing Round

Nigeria has awarded 37 oil and gas blocks under its 2025 Licensing Round after concluding a competitive bidding process that attracted 143 companies. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expects the new licences to add 500 million barrels to Nigeria’s oil reserves and increase crude production by 300,000 barrels per day over the next three years.

Competitive Bidding Process

The licensing round attracted bids from 143 companies, which submitted a total of 200 bids covering 37 of the 50 blocks offered. The process began in November 2025 when about 300 companies expressed interest. After reviewing technical and financial submissions, the NUPRC shortlisted 196 companies before inviting qualified applicants to submit final bids.

The regulator announced the successful awards during the Commercial Bid Conference held in Abuja on 21 July. Nigerian companies accounted for most of the 31 successful bidders, including SSonic Petroleum, CFP Pipeline, Dutchford E&P, Attabanson Global, Rosem Energy, Asharami and LexOil.

While 37 blocks secured investors, 13 attracted no bids, reflecting mixed investor interest across Nigeria’s available exploration acreage.

The NUPRC said the licensing process considered more than the value of financial bids. In addition to signature bonuses, the regulator assessed proposed exploration work programmes, technical capability and the financial strength of each bidder before making its final selections.

Successful companies must meet their contractual obligations within 90 days of the awards. The commission also reiterated that operators who fail to develop awarded acreage risk losing their licences under its “drill or drop” policy, which requires companies either to explore allocated blocks or return them to the government.

Frontier Basins Attract New Interest

The licensing round recorded investor interest in frontier basins that had previously seen little exploration activity. According to the NUPRC, the Benue, Chad, Anambra and Benin basins all attracted bids for the first time during a Nigerian licensing round.

These inland basins lie outside the Niger Delta, which remains the centre of the country’s oil production. However, many of the 13 blocks that failed to secure bids are also located within these frontier regions, highlighting the exploration risks that continue to influence investor decisions.

The NUPRC said it will include the unsold blocks in the next licensing round after receiving approval from President Bola Tinubu. The regulator believes the newly awarded licences will strengthen exploration activity and contribute to higher reserves and production over the coming years.