Nigeria returns 13 unbid oil blocks to licensing pool as 196 firms qualify for commercial bidding

The Federal Government will return 13 oil and gas blocks to the national licensing pool after the assets failed to attract bids in Nigeria’s 2025 Licensing Round.

The Nigerian Upstream Petroleum Regulatory Commission offered 50 blocks across seven sedimentary basins, but investors submitted bids for only 37.

Oritsemeyiwa Eyesan, chief executive of the NUPRC, disclosed this on Tuesday during the 2025 Commercial Bid Conference in Abuja.

“At the end of the exercise, we had 50 blocks on offer, but representations were received for only 37 of them,” Eyesan said.

She added that the remaining 13 assets would return to the licensing pool for possible inclusion in future bid rounds.

143 firms submit about 200 bids

Despite the lack of interest in 13 assets, NUPRC recorded strong competition for the remaining blocks.

Nearly 300 companies initially expressed interest in the licensing round.

The commission reduced the number to 196 firms after completing its prequalification process.

Of the prequalified companies, 143 progressed to the commercial bidding stage and submitted about 200 bids for the available assets.

“From the almost 300 expressions of interest we received, the prequalification process narrowed the number to 196 companies,” Eyesan said.

“Eventually, 143 companies participated in the commercial bidding exercise, submitting about 200 bids.”

The number of bids exceeded the number of available blocks because several companies applied for more than one asset or competed for the same blocks.

The highest bidder will not automatically win

Eyesan said companies that submitted the highest financial offers would not automatically win the oil and gas blocks.

NUPRC will also assess each bidder’s technical competence, operational experience and ability to finance and develop the assets.

The regulator wants to avoid awarding licences to companies that can make large upfront offers but lack the capacity to begin exploration or production.

“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.”

NUPRC assessed each company’s experience, operational structure, proposed work programme and commitment of resources.

The commission also examined whether bidders could complete their proposed projects within agreed timelines.

How NUPRC will select winners

NUPRC will combine technical and commercial scores when selecting successful bidders.

The evaluation will cover each bidder’s signature bonus commitment, work programme, technical capacity, financial strength and performance guarantee.

A signature bonus is the upfront payment a company offers for the right to operate an oil or gas block.

The work programme explains how the company plans to explore and develop the asset.

Performance security protects the government when a winning company fails to meet its investment and development obligations.

NUPRC said the weighted evaluation system would help it select companies capable of delivering long-term value rather than those offering only the largest payments.

The commercial bid opening marks the final competitive stage before the commission announces successful bidders.

Why 13 blocks fail to attract investors

The return of 13 blocks shows that investor interest was not evenly distributed across the assets.

Companies often favour blocks with proven oil and gas potential, available infrastructure and lower development risks.

Frontier assets may attract less interest because companies must spend heavily on seismic studies, exploration drilling, roads, pipelines and other infrastructure before confirming commercially viable reserves.

Security concerns and the distance from existing production facilities may also affect investor decisions.

NUPRC did not immediately provide a breakdown of the 13 blocks that failed to attract bids.

Returning the assets to the licensing pool will allow the government to review their data, commercial terms and investment requirements before offering them again.

50 blocks offered across seven basins

The Federal Government announced the 2025 Licensing Round in November 2025 under the Petroleum Industry Act 2021.

The round covered 50 oil and gas blocks across seven sedimentary basins.

The assets included 16 onshore blocks in the Niger Delta and 18 shallow-water blocks.

The government also offered one deep-offshore block and three blocks in the Benin Basin.

The Anambra Basin, Chad Basin and Benue Trough each accounted for four blocks.

The application portal opened in December 2025, while NUPRC held a pre-bid conference in Lagos in January 2026.

Registration and prequalification submissions closed in February. The commission completed the prequalification process in March before moving qualified companies to the technical and commercial stages.

Why this matters

Nigeria needs fresh investment to increase oil and gas production, strengthen government revenue and improve foreign exchange earnings.

However, awarding blocks alone will not increase production.

Winning companies must raise capital, complete exploration, develop discoveries and connect producing fields to available infrastructure.

Past licensing rounds have left some assets inactive because winning companies lacked the money or technical capacity to develop them.

NUPRC’s decision to consider technical competence alongside financial bids could reduce the risk of companies acquiring blocks only to leave them undeveloped.

The return of 13 unbid assets also allows the government to examine why investors avoided them.

Nigeria may need to improve geological data, review commercial conditions or provide clearer development incentives before offering the blocks again.

The success of the licensing round will ultimately depend on how many winning companies move from bidding to exploration and commercial production.