The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a deadline to 31 companies that won bids for 37 oil and gas blocks in the 2025 Licensing Round, warning that failure to pay signature bonuses on time will result in the immediate forfeiture of their provisional awards.
In an official compliance update, the regulator confirmed that successful bidders have until October 19, 2026, to settle their financial commitments.
Under the Petroleum Industry Act (PIA) 2021 guidelines, winning companies must pay signature bonuses within a strict 90-day window following the issuance of provisional award letters on July 21, 2026. With one month already elapsed, bidders now have 60 days remaining to finalize payment.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the commission stated.
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- Financial and Regulatory Requirements
Under the licensing terms, successful companies must satisfy specific requirements per block to retain their assets. These include signature bonuses (these payments range between $3 million and $7 million per asset depending on the block’s location); additional statutory fees such as first-year rents paid by the companies who are also required to provide necessary performance guarantees within the prescribed window.
The PIA provides that defaulting bidders automatically lose both their bid guarantees and awards, which will immediately be transferred to designated next-ranked reserve bidders.
2025 Licensing Round
The 2025 round attracted significant market interest, receiving approximately 200 bids from 143 companies for 37 of the 50 blocks offered. Thirteen blocks received no bids.
The awarded Petroleum Prospecting Licences (PPLs) span multiple strategic hydrocarbon zones. These include:
Niger Delta: Onshore, shallow water, and deep offshore areas (including PPL 2A29 to PPL 2A62, and deep offshore block PPL 2010).
Frontier Basins: Benin Basin (PPL 308), Anambra Basin (PPL 900 to PPL 903), Chad Basin (PPL 700), and the Benue Trough (PPL 800 and PPL 801).
NUPRC Chief Executive Officer, Mrs. Oritsemeyiwa Eyesan, earlier urged successful bidders to expedite payments to enable fast-track development of the assets.
The Commission said full details on awarded companies, reserve ranks, and compliance procedures are available on the official 2025 Licensing Round online portal.
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