The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has held a pre-bid conference for the 2025 Oil Licensing Round, which aims to attract investment into the country’s upstream sector. The conference, attended by top government officials, industry stakeholders, and prospective bidders, outlined the modalities and expectations for the exercise.
NUPRC’s Chief Executive, Oritsemeyiwa Eyesan, announced a reduction in entry costs, including a revised signature bonus and other pre-first oil fees, to encourage investment. The commission has also adjusted several charges payable by bidders before first oil, as part of ongoing reforms to attract capable investors. Eyesan emphasized that the commission is committed to building a sustainable industry, supporting investors, service providers, and financiers alike.
The 2025 licensing round offers 50 oil and gas blocks, with a focus on attracting technically competent operators to work the assets. The commission has taken into consideration feedback from previous bidding processes and has implemented reforms to reduce barriers to entry. Minister of State for Petroleum Resources, Heineken Lokpobiri, stated that the bidding process has a robust framework, showing a commitment to transparency and accountability in Nigeria’s upstream sector.
The licensing round is part of the government’s efforts to increase oil production, with a target of two million barrels per day by 2027 and three million barrels per day by 2030. The NUPRC has unveiled a three-pillar agenda for the country’s upstream sector, focusing on production optimization and revenue expansion, regulatory predictability and speed, and safe, governed, and sustainable operations.
The commission plans to increase production and expand revenue through the recovery of shut-in volumes, arresting decline, and reducing losses. Regulatory predictability and speed will be achieved by running regulation like a service, enforcing rules transparently, and making quick, time-bound decisions. The NUPRC will also strengthen governance, process safety, host community outcomes, and encourage decarbonization through safe, governed, and sustainable operations.
The commission will be measured on key success metrics, including faster and predictable regulatory approvals, higher and more secure production, and credible licensing and disciplined acreage performance. The NUPRC will enhance regulatory efficiency and predictability by publishing Service Level Agreements for all major approvals and reducing the timeline to production through proactive discussions and mutual agreement on timelines.
The commission has convened a monthly engagement forum with operators to focus on approval timelines, production restoration, infrastructure integrity, and gas monetization and development. The NUPRC will also improve hydrocarbon accounting and measurement by tracking every barrel produced and promptly addressing discrepancies or losses. With these reforms and initiatives, the commission aims to create a more attractive and sustainable investment environment in Nigeria’s upstream sector.
