13 Nigerian oil and gas blocks to return to licensing basket after failing to attract bids

The Federal Government says 13 of the 50 oil and gas blocks offered under the 2025 Licensing Round will return to the licensing basket after failing to attract bids. According to NUPRC Chief Executive Oritsemeyiwa Eyesan, 143 companies submitted about 200 bids for 37 of the available blocks. Nearly 300 companies initially expressed interest, but 196 passed the prequalification stage. The blocks are spread across seven sedimentary basins, while successful bidders will be selected based on technical and commercial evaluations, including signature bonuses, work programmes and performance security.

The Federal Government has announced that 13 of the 50 oil and gas blocks offered in Nigeria's 2025 Licensing Round will be returned to the licensing basket after failing to attract bids from prospective investors.
The disclosure was made on Tuesday by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, during the 2025 Commercial Bid Conference in Abuja.
According to Eyesan, although 50 oil and gas blocks were initially offered to investors, only 37 attracted representations from prospective bidders.
"At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning back to the basket," she said.
The development means the 13 blocks that failed to attract sufficient investor interest will not be awarded in the current licensing round and could be made available for future investment opportunities.

143 COMPANIES SUBMIT ABOUT 200 BIDS

Despite the lack of bids for 13 of the assets, the NUPRC said the licensing round attracted significant interest from investors.
Eyesan disclosed that 143 companies participated in the commercial bidding process and submitted approximately 200 bids for the available assets.
"We have a total of 143 companies showing interest for 200 bids. That, for us, was remarkable, and I must say thank you," she said.
The figures indicate that several oil and gas companies and investors are competing for access to Nigeria's upstream petroleum assets.
The government sees the level of participation as a possible indication of renewed confidence in the country's petroleum industry following regulatory reforms introduced under the Petroleum Industry Act.

NEARLY 300 COMPANIES INITIALLY EXPRESSED INTEREST

Eyesan said almost 300 companies initially expressed interest when the licensing round opened.
She described the high level of initial interest as a sign that investor sentiment towards Nigeria's upstream petroleum sector may be improving.
"When we started the journey, we got interest from almost 300 companies. I repeat, almost 300 companies. That, in my view, was an indication that the tide has turned for Nigeria," she said.
However, the number of interested companies was reduced during the screening process.
After the prequalification stage, 196 companies remained eligible to proceed to the next stages of the licensing process.
Eventually, 143 companies participated in the commercial bid process, submitting about 200 bids for the available assets.

50 BLOCKS WERE OFFERED ACROSS SEVEN SEDIMENTARY BASINS

The 2025 Licensing Round was officially announced on November 11, 2025, in accordance with the Petroleum Industry Act 2021.
The government offered 50 oil and gas blocks spread across seven sedimentary basins in different parts of Nigeria.
The assets included:
16 Niger Delta onshore blocks
18 shallow-water blocks
One deep offshore block
Three blocks in the Benin Basin
Four blocks in the Anambra Basin
Four blocks in the Chad Basin
Four blocks in the Benue Trough
The wide geographical spread of the assets was intended to provide investors with opportunities across different petroleum-producing and prospective regions of the country.
The government has been seeking to attract new investment into the upstream sector to increase exploration, develop new reserves and boost domestic oil and gas production.

LICENSING PROCESS BEGAN IN DECEMBER 2025

The official bid portal opened on December 1, 2025, allowing interested companies to register and submit their applications.
A pre-bid conference was later held in Lagos on January 14, 2026.
The conference provided potential investors with information about the bidding process, technical requirements, regulatory conditions and other requirements for participating in the licensing round.
Registration and prequalification submissions closed on February 27, 2026.
The prequalification exercise was completed on March 16, after which successful companies proceeded to the technical and commercial evaluation stages.

WINNING BIDS WILL NOT BE BASED ON MONEY ALONE

The government has explained that the highest financial offer will not automatically determine which companies receive the oil and gas blocks.
Instead, winning bids will be determined through a weighted evaluation system that considers several factors.
These include signature bonus commitments, proposed work programmes and performance security.
The evaluation combines technical and commercial scores, meaning that companies will be assessed on both their financial capacity and their ability to successfully develop the assets.
The approach is intended to prevent the allocation of petroleum assets to companies that may have the financial resources to bid but lack the technical expertise or operational capacity to develop them.

GOVERNMENT SEEKS STRONGER UPSTREAM INVESTMENT

The licensing round forms part of wider efforts by the Federal Government to attract fresh investment into Nigeria's upstream petroleum sector.
Nigeria remains heavily dependent on oil and gas revenues, making investment in exploration and production important for government income, foreign exchange earnings and energy security.
However, the sector has faced several challenges over the years, including declining investment, oil theft, insecurity, regulatory uncertainty and difficulties in developing some petroleum assets.
The government hopes that a more transparent and competitive licensing system will help attract credible investors and encourage companies to commit funds to exploration and production.

WHY THE 13 UNBID BLOCKS MATTER

The return of 13 blocks to the licensing basket suggests that investor interest is not evenly distributed across all the assets offered by the government.
Some blocks may have attracted multiple competing bids because investors consider them commercially attractive, while others may have received little or no interest because of factors such as geological uncertainty, infrastructure challenges, operating costs or security concerns.
Returning the unbid blocks to the licensing basket allows the government to offer them again in future rounds, potentially after additional geological information becomes available or investment conditions improve.
It also gives regulators an opportunity to review why investors did not bid for the assets and consider whether changes are needed to make them more attractive.

THE BIGGER PICTURE FOR NIGERIA'S OIL INDUSTRY

The 2025 Licensing Round comes as Nigeria seeks to increase oil and gas production and reverse years of declining investment in the upstream sector.
The country has significant petroleum reserves, but turning those resources into higher production requires substantial investment, advanced technology and long-term commitments from operators.
The participation of 143 companies and the submission of about 200 bids could therefore be viewed as a positive development for the industry.
However, the ultimate success of the licensing round will depend on whether winning investors can translate their commitments into actual exploration, field development and production

NEXT STEPS FOR THE LICENSING ROUND

The NUPRC will continue with the evaluation and award process based on the technical and commercial criteria established for the licensing round.
The 13 blocks that failed to attract bids will return to the licensing basket and could be offered to investors in a future process.
For the 37 blocks that attracted investor interest, the government will have to ensure that the final award process remains transparent and that successful bidders have the capacity to fulfil their proposed work programmes.
If the process is successfully completed and investors deliver on their commitments, the licensing round could contribute to increased exploration, new oil and gas discoveries and higher production in the years ahead.
For Nigeria, the broader objective is not simply to award petroleum blocks but to ensure that the assets are placed in the hands of credible investors capable of developing them efficiently and contributing to the country's energy security and economic growth.