Nigeria plans to hold at least one oil licensing round every year, with the possibility of twice-yearly auctions, as the Federal Government steps up efforts to revive upstream activity and raise crude production to three million barrels per day by 2030.
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said the regulator would also implement tighter work commitments on operators to ensure that awarded assets are developed rather than left dormant.
“These will be annual, if possible, even twice-annual events. At a minimum, we’ll be going to the market on an annual basis,” Eyesan said in an interview with S&P Global.
She said future licensing rounds would be completed within six to seven months, marking a significant acceleration from the five- to 10-year gaps that previously occurred between Nigerian oil auctions.
Nigeria has been producing roughly 1.5 million barrels of crude per day, well below its 2030 target, with ageing fields, underinvestment, vandalism and the exit of major international oil companies from onshore assets weighing on the sector.
Next Bid Round
The NUPRC is preparing to launch its next licensing round by early October, with the 13 blocks left unawarded from the 2025 round expected to return to the pool.
Fresh acreage will also be offered in deepwater, shallow water and potentially frontier onshore basins, Eyesan said.
The 2025 round offered 50 blocks across the Niger Delta, Benin, Anambra and Chad Basins, with 37 licences awarded in July.
The NUPRC expects the successful assets to contribute about 300,000 barrels per day of additional production within their first three years.
Eyesan said the regulator would take a more selective approach in the next auction, focusing on commercially viable assets.
“I knew we were going to have a problem with some of the blocks,” she said, acknowledging that the commission had “taken a gamble” by putting some assets into the previous licensing pool prematurely.
Drill-or-Drop Rule
The regulator is also tightening conditions to discourage passive ownership of oil assets.
Under the new “drill-or-drop” approach, shallow-water licences awarded in the 2025 round carry three-year terms, subject to extension, while deepwater and frontier concessions have five-year terms.
The policy is intended to ensure that operators move quickly from licence acquisition to exploration and development.
READ ALSO:
- Nigeria Targets $10bn Investments from 2025 Licensing Round As NUPRC Opens Portal
- Nigeria’s 3m bpd Oil Goal: Will New Block Licensing Deliver?
- Nigeria to Unlock $50bn Oil, Gas Investment With Offshore Reforms
- Crude Swap: Can NUPRC’s Plan Fix Domestic Refinery Supply Shortages?
The NUPRC is particularly targeting new and indigenous operators to fill the gap created by the departure of international oil companies from Nigeria’s onshore industry.
“For this round, we were very mindful that the target audience was not overtly going to be the major players in the industry,” Eyesan said, citing Renaissance and First E&P as examples of newer operators making progress in the sector.
Deepwater Investment
While the regulator seeks to revive inland production, deepwater remains central to Nigeria’s strategy for attracting major international investment.
Shell, Eni and ExxonMobil have major deepwater expansion projects, while Chevron secured PPL 2010, the sole deepwater asset that attracted attention from the oil majors in the latest bid round.
Eyesan said the NUPRC aims to attract $30 billion-$50 billion in new investment into 22 deepwater projects by 2030, supported by new tax incentives.
She also observed that geopolitical developments could influence how international investors assess their West African portfolios.
“I think it’s enhanced the way the investors analyze and look at their presence in West Africa,” Eyesan said, referring to the impact of the US-Iran conflict.
For the NUPRC, the challenge now is to ensure that faster licensing, tighter work obligations and new investment translate into actual drilling and development across Nigeria’s upstream sector.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X